A Bolton estate agent says it is "unlikely" inflation will rise to 13.5 percent this year.

Last year saw inflation in the North West hit 13.5 percent, the highest in the country.

And now it has been revealed the number of mortgage approvals being made to home buyers fell in December to the lowest level since May 2020, according to Bank of England figures.

Some 35,600 mortgages were approved for house purchase, down from 46,200 in November, the Bank’s Money and Credit report said.

Andrew Cardwell at Cardwells Estate in Bolton said that while the figures suggested a hard-hitting period for home buyers, this year would not look so bleak.

The Bolton News: RADARRADAR (Image: RADAR)

He said: “These figures show substantial growth in house prices for the year end up to November 2022, which is indicative of the period.

“The limited supply of property to the market was not enough to meet the strong levels of demand, buoyed by lower interest rates during that period.  

“These supply and demand levels put upward pressure on property prices throughout the year.”

The typical UK house price in November was £295,000, which was £28,000 higher than a year earlier but a slight decrease from the previous month’s record high of £296,000, according to the Office for National Statistics (ONS).

Andrew added: “The North West overall showing an annual inflationary rise of around 13.5 per cent being the highest in the England speaks volumes about strength of the property market in our wider region.

“Since Autumn 2022 we have seen political changes, and of course, changes in the financial markets, particularly with regards to interest rate increases.

“These were always going to have an impact on the property market, specifically on the demand side, as the cost of borrowing increases.”

Mortgage rates jumped in the autumn of 2022 following the mini-budget. Bank of England base rate hikes have also been pushing up borrowing costs, as Andrew suggests.

He said: “Therefore the slight realignment mentioned in the national average by the ONS, is no surprise, nor is it a cause of any great concern.

“The Bolton property market is built on strong fundamentals which will remain in place throughout 2023 and well beyond.

“It is unlikely that annual price rises of 13.5 per cent will be seen again this year, as financial market conditions are different, though single digit percentage growth may be more likely.”