Mortgage approvals drop ahead of Stamp Duty changes

Mortgage approvals for house purchases decreased in February, with the Bank of England reporting a drop of 600 to 65,500, following a smaller decline in January. Experts suggest this indicates a slowdown in housing market recovery early in the year, due to limited economic momentum and fluctuating interest rates.

Richard Donnell of Zoopla highlighted the impact of the Stamp Duty deadline rush on slowing approvals, but expects recovery to reach 80,000 approvals per month as normal conditions return. Nathan Emerson of Propertymark remains optimistic about housing market growth later in the year, but stresses the importance of managing inflation before considering base rate cuts.