Following a few turbulent winter months that saw market activity stall in the aftermath of the mini-budget, a rapid increase in mortgage lending has been forecast as buyers return to the market for the spring season.
The latest market analysis by specialist property lending experts, Octane Capital, looked at historic mortgage lending figures and how they differ across each seasonal period of the year.
According to the data, over the last two years, a total of £144.9bn has been lent during the winter months, equating to an average of £72.5bn.
However, as the temperature starts to creep up, so too does the total sum of lending seen across the mortgage sector. Over the last two years, a total of £148bn has been lent during the spring months and while a 2.1% increase versus the winter months may not seem that significant, it equates to over £3bn more in mortgage lending, averaging just shy of £74bn per year.
This uplift in mortgage lending continues into the summer, with mortgage lending increasing by a notable 11.4% between the spring and summer seasons, before cooling by -0.7% between summer and Autumn.
But while the summer months may see the highest level of mortgage lending, it’s the spring season when the market is seeing the strongest growth in lending activity.
Jonathan Samuels, CEO of Octane Capital, commented: “With the exception of the initial Covid year when the industry was first placed into lockdown, the spring season traditionally marks a noticeable increase in mortgage market activity and we expect this year to be no different.
"In fact, while the summer months tend to see a higher total sum lent, it’s the spring months that are seeing the largest increase in lending levels in terms of the year-on-year appetite shown by the nation’s homebuyers.
"So while we’ve already seen a strong start to the year, all things considered, there’s a very good chance that come summer, the current dip in mortgage market performance will be firmly behind us.”