Despite talk of there being a post Budget bounce, mortgage transactions stayed unchanged in December.
Net borrowing stood at £4.6 billion, with mortgage approvals falling by 3,100 month-on-month in December to 61,000.
In contrast approvals for remortgaging rose by 1,600 to 38,400 in December.
Nathan Emerson, chief executive of Propertymark, said: “Despite the economy gradually showing signs of improvement, it is disappointing not to see this fully translate into a dynamic housing market quite yet.
“We currently sit in a position where people who are thinking of a house purchase are rightly cautious regarding their finances. It is, however, positive to see a modest uplift regarding remortgaging as 2025 ended.
“For the housing market to deliver sustainable growth, there are many cogs that need to turn in harmony with each other, and although we are certainly seeing encouraging signs regarding the number of properties coming to the market, as well as initial buyer interest on properties – there is a need for overall financial confidence from consumers to for the ‘housing equation’ to fully work.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, says: “While this is not a runaway market, it is a far healthier one than a year ago.
“Transactions are gradually improving and prices have proved resilient, particularly where homes are priced realistically.
“We’re seeing far more purposeful buyers than we did last autumn, and assuming interest rates remain supportive, the spring market looks encouraging with momentum continuing to build.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, says: “Transaction numbers slipped slightly in December but now that the Budget is out of the way, buyers and sellers who may have put decisions on hold are pressing ahead with their plans.
“We have seen a strong level of enquiries since then, with application levels very similar to last January’s.
“Lenders are doing their bit to encourage activity with a number trimming their mortgage rates this month although we have seen some increases as Swap rates, which underpin the pricing of fixed-rate mortgages, have edged upwards. December’s increase in inflation means that another base rate cut from the Bank of England at next week’s meeting is unlikely but longer term, further reductions are expected as inflation eases.
“With mortgage pricing expected to edge up and down in coming weeks, borrowers would be sensible to plan ahead and book a rate in advance of when they need it. If rates have fallen when they come to take out the mortgage, they should be able to move onto a cheaper rate at that time; if they have risen, they will be pleased they secured a rate when they did.”
Despite this negativity, there is talk that market activity has picked up since December.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “In our offices, we have noticed the market is on the move and certainly since a particularly quiet December.
“Mortgage approvals always prove to be a reliable indicator of future market direction but it was no surprise that the Bank of England numbers were a little lower last month bearing in mind the hit to confidence from the Budget uncertainty.
“On the other hand, transaction numbers – also out today – showed that longer-term decision-making was not particularly compromised.
“Looking forward, we don’t expect massive changes as there is too much stock available in most price ranges at present but realistic sellers who price accordingly will notice the difference.”