Estate industry reacts to bank of England mortgage figures.
These figures represent a progressive recovery in the property market.
The number of mortgages approved and their value indicate that the UK housing market is on the mend as the nation begins to approach a post-pandemic world, according to new statistics from the Bank of England.
Released yesterday, the central bank’s ‘Money and Credit’ data release showed that net mortgage borrowing in the country was £ 11.8bn in March. This was apparently higher than the pre-financial crisis peak of £ 10.4 billion in October 2006. The number of mortgages approved for home purchases in the same month was 82,700, down from 103,100 in November but above 73,000 in February. In a statement, the bank said these numbers “remained relatively strong.”
Sarah Coles, a personal finance analyst at Hargreaves Lansdown, said people could see “optimism bubbling up” in the numbers.
He added: “The mortgage boom is partly explained by buyers rushing to meet the stamp duty deadline. In the end, the deadline was changed to June, but the buyers were already engaged and eager to finish everything as soon as possible. We know from data for the following months that renewed optimism among buyers means that the home search boom has continued. And since it hasn’t been accompanied by the same enthusiasm for home sales, prices are on the move again.”
Others were more optimistic. Mark Harris, CEO of SPF Private Clients, said he expected the market to continue to be “dynamic” in the coming months. He added: “With the stamp duty holiday originally expected to end in March, this focused the minds of borrowers and helps explain the increase in lending.”
Many saw the extension of the stamp tax holiday as one of the main drivers of the housing market resurgence. HM Treasury, under Rishi Sunak, announced it in July 2020 and then extended that holiday into March. It is currently scheduled to begin ending in June.
Gareth Lewis, commercial director of MT Finance, said it was interesting to see that approvals for the home purchase were lower. He added: “This may be due to the extension of the stamp duty holidays, which removed immediate pressure in terms of closing deals.”
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