Mortgage approvals fell in November

Mortgage approvals decreased to 65,720 in November, down from 68,129 in October, according to data from the Bank of England. Analysts attributed the decline to rising mortgage rates and a general easing in demand. However, they anticipate a surge in approvals as buyers rush to secure properties before stamp duty thresholds change in April. Pantheon Macroeconomics noted that "mortgage approvals could run ahead of expectations" as households aim to avoid higher costs. From April, the threshold for stamp duty on property purchases will drop from £250,000 to £125,000, and for first-time buyers, it will decrease from £425,000 to £300,000. The Bank of England is expected to lower interest rates at least twice this year from 4.75%, which is likely to drive up demand in the housing market.

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