Mortgage approvals for house purchases fell for the third straight month in June, according to the latest data from the Bank of England. Despite the downturn, property professionals remain optimistic about the market’s prospects for the latter half of the year.

The Bank’s report revealed that there were 59,976 mortgage approvals in June, marking a 0.3% decrease from the previous month. However, this figure represents an 11.7% increase compared to the same period last year.

Jeremy Leaf, a north London estate agent and former RICS residential chairman, commented on the data, stating, “Mortgage approvals are always a reliable indicator of future market activity. However, with much discussion about potential lower base rates over the past few months, it is inevitable that buyers might delay their plans if mortgage costs are expected to decrease soon.”

Leaf also noted that the figures do not account for approximately 35% of buyers who do not rely on finance. “Overall, in our offices, we are seeing a steady, if not spectacular, picture. It seems summer holidays have arrived early as the market adjusts to a post-election mindset.”

Nick Winter, a financial planner at Quilter, pointed out that despite the slight dip in approvals, mortgage borrowing continues to rise. “The housing market appears to be gradually gaining momentum. Individuals borrowed a net £2.7 billion in mortgage debt in June, more than double the £1.3 billion seen in May. The annual growth rate for net mortgage lending also increased to 0.5% in June, up from 0.3% in May.”

Winter added, “Buyers have been cautious amid an unpredictable economic outlook and fluctuating mortgage rates. However, the prospect of a new government and hopes for increased stability have instilled some confidence in the market.”

As the housing market navigates these fluctuations, industry experts remain hopeful that the second half of the year will bring renewed activity and growth.