Mortgage Approvals Surge in Northern Ireland: A Sign of a Thriving Housing Market?
The latest quarterly results from Danske Bank in Northern Ireland have revealed a remarkable 50% surge in mortgage approvals, signaling a return to normal levels of activity in the housing market. This uptick in mortgage lending is a welcome development, especially considering the challenges posed by the cost of living crisis.
Image: A thriving housing market is a key indicator of economic growth.
According to the bank’s quarter one results, pre-tax profits were up 5% year on year, reaching £51.3m, while income rose 12% to £94.2m. However, costs also increased, from £46.1m to £54.2m, due to inflationary pressures and investments in improving customer experience.
“I am pleased to announce a strong set of results for the first three months of 2024. A robust financial performance means we are well positioned to continue to support customers when they need us.” - Vicky Davies, CEO of Danske Bank UK
The bank’s deposits were up 1% year-on-year, while lending saw a 5% increase. Mortgage approvals, in particular, experienced a significant boost, with a 50% year-on-year increase. This surge in mortgage lending is a promising sign for the housing market, which has been experiencing a period of uncertainty.
Mortgage lending is a crucial aspect of the housing market.
CEO Vicky Davies attributed the increase in mortgage approvals to a return to normal levels of activity in the housing market. She also expressed optimism about the future, citing expectations that the Bank of England base rate will ease back, leading to continued demand for mortgages.
“In quarter one, mortgage lending approvals in Northern Ireland were up over 50% year-on-year, but that is compared to a very quiet first quarter in 2023, reflecting a return to more normal levels of activity in the housing market.” - Vicky Davies, CEO of Danske Bank UK
As the housing market continues to thrive, it’s essential for lenders to stay close to their customers, providing support for those who need it while helping businesses pursue growth opportunities and individuals achieve their homeownership goals.
Homeownership is a key aspect of the housing market.
The surge in mortgage approvals is a positive indicator of the housing market’s resilience and a testament to the strength of the Northern Irish economy. As the market continues to evolve, it’s crucial for lenders, policymakers, and individuals to work together to ensure that the housing market remains a driving force for economic growth.
