Mortgage approvals are expected to top 780,000 this year, according to research by mortgage adviser Alexander Hall.
The study looked at Bank of England data and found that average monthly approvals so far this year sit at 65,119, the highest since 2021.
This figure is 4% higher than the monthly average in 2024, following a 31% rise between 2023 and 2024.
Alexander Hall forecasts that total approvals could reach 781,429 by the end of the year, with activity still below historic highs but showing steady growth.
Stephanie Daley, director of partnerships at Alexander Hall, said: “The mortgage sector has been benefiting from improving consumer sentiment since the Bank of England first put a hold on interest rates back in September 2023 and this momentum has only grown stronger following the four cuts that have materialised since.
“As a result, we’ve seen consistently positive growth in mortgage approval numbers over the course of the last year and it’s apparent that this trend has continued into 2025.
“Of course, we’re yet to see the market return to full strength when comparing current activity to previous historical highs, but it’s also important to note that while there have been improvements to market affordability by way of stronger earnings growth, the nation’s homebuyers are facing a considerably tougher task in today’s market.”
Daley added: “Despite these challenges, we’re on course to see total mortgage approvals exceed the 780,000 threshold this year, which demonstrates that buyer appetites are very much alive and well in today’s market.”
