Mortgage approvals fell by 24% in 2023 compared with 2022, according to research from estate agent comparison site GetAgent.co.uk.
Between January and October 2023, an average of 47,602 mortgages were approved per month, bringing the estimated yearly total to 571,219.
2023 was the second consecutive year in which mortgage approvals fell significantly, following a 20% drop between 2021 and 2022, from 937,093 to 752,131.
Compared with the peak in 2021, approvals dropped by 39% in 2023, amounting to 365,874 fewer mortgages.
The Bank of England raised the base rate from 0.10% in December 2021 to 5.25% in August 2023, in a bid to combat double-digit inflation, making mortgages increasingly expensive.
However, following recent decisions to hold the base rate, GetAgent suggested that 2024 could see a more positive trend.
Colby Short, co-founder and CEO of GetAgent.co.uk, said: “There’s no getting around it, 2023 has been a difficult year for the property industry, as higher mortgage rates have dragged down people’s ability to buy.
“The one positive is the Bank of England has left the base rate unchanged since August 2023, which is helping people adjust to a new normal, as well as raising the potential for rate cuts in the new year.
“The market is likely to experience a recovery in 2024, though it surely won’t reach the heady heights of 2021, when the base rate was 0.10% and there was a stamp duty holiday for much of the year.”
