uk Mortgage Approvals Decline for Third Month Amid Stamp Duty Changes

Mortgage approvals in the UK have fallen for the third consecutive month in March, signaling a potential slowdown in the housing market. The Bank of England reported approximately 64,300 mortgage approvals for house purchases during the month. This decline precedes changes to stamp duty discounts that took effect on April 1. House sales surged in March, more than doubling compared to the previous year, as buyers rushed to finalize transactions before the stamp duty deadline. Across the UK, an estimated 177,370 sales occurred in March, marking a 104% increase from the 86,810 sales in March 2023. Approvals for remortgaging also saw a slight increase, reaching 33,400. The Bank of England's data indicates a shift in market dynamics as buyers adjust to the new stamp duty thresholds. Uncertainty in the broader economy may have contributed to the dampened mortgage market activity in March. Experts suggest that potential interest rate reductions from the Bank of England could provide a boost to the market following the end of the stamp duty concession.