The latest figures from the Bank of England show that mortgage approvals for January sit at 55,227, up from 51,506 in December.

Approvals are up 7.2% month on month and 40.2% up year on year (Jan 2023 figure was 39,382).

January marks the fourth consecutive increase and  approvals are now at their highest level since June 2023 (53,953).

Commenting on the latest figures Benham and Reeves director Marc von Grundherr said: “Buyer indecision has been the biggest factor slowing the property market over the last year and who can blame them with interest rates climbing and mortgage offers changing by the day.

“However, we simply haven’t seen the same level of hesitation in recent months and market stability has improved notably since interest rates were first held in September of last year.

He added: “This confidence boost has naturally led to an increase in mortgage approvals and sellers are already starting to benefit from a greater degree of interest and an increase in the number of offers submitted.”

EasyMoney founder and chief executive Jason Ferrando, commented:

“A fourth consecutive increase in mortgage approvals demonstrates that buyer confidence is on the up, despite the base rate remaining at a lofty 5.25%.

“While buyers are continuing to tread with a degree of caution we’re already seeing this uplift in mortgage market activity start to filter through to the wider market and help stimulate sold prices in a positive manner”.

He added: “These early signs suggest that the property market is set for a far more settled year and this is good news for both homebuyers and sellers alike.”

Antony Roberts estate agency head of sales Amy Reynolds explained that on the ground, the sales market was picking up momentum after a quieter 2023.

“A surge of committed buyers and a strong pipeline of serious applicants bodes well for sellers.

“With a historical pattern of market slowdown during an election year, the current landscape presents an ideal moment for vendors to capitalise on heightened demand, potentially resulting in faster sales and more favourable prices. Notably, we’ve seen an uptick in applicants with sizeable budgets seeking to upsize to their forever homes, as well as first-time buyers and second steppers wanting flats with outside space.

She added: “Overall market strength and stability is being underscored by better mortgage rates and persistent supply/demand imbalances, which is particularly evident across London.”