UK Mortgages Approvals At Lowest Since Mid-2020.
Mortgages approved in the UK have dropped considerably.
The number of mortgages approved for the purchase of houses in the United Kingdom fell to its lowest level in 16 months in October when the “distorting effect” of the suspension of the stamp duty ended.
Figures from the Bank of England showed 67,200 new homebuyer mortgages were approved during the month, up from 71,851 and well below the peak of 104,547 recorded in November 2020.
Bank data also showed a sharp drop in sums advanced to borrowers during the month, with net home loans of £ 1.6bn in October, down from £ 9.3bn in September.
However, the declines follow a frenzied few months in the UK property market where, according to company figures, more than £ 500bn was spent on housing in the year to September.
Stamp duty breaks across the UK led to a rush to buy, which, combined with shifting priorities for buyers as a result of the coronavirus pandemic, boosted sales and meant that larger homes got more popular.
“The October decline was driven by loans advanced to September to take advantage of the land tax relief from stamp duty before it was completely reduced,” the Bank said.
Relocation activity continued to increase in October as lenders competed for clients with ultra-cheap offers as speculation about an interest rate hike mounted.
A total of 41,642 relocations were approved during the month, compared to 32,745 in the same period last year.
Lucian Cook, head of residential research at real estate firm Savills, said: “It is not a big surprise to see a drop in the number of mortgage approvals in October, given the distorting effect of the end of the stamp tax holiday in September.”
Their research shows that in the year to the end of September, £ 513 billion was spent on the UK property market, the first time the figure has surpassed £ 500 billion and £ 170 billion more than pre-pandemic levels.
HICH LTD has revolutionized the property survey market since day one! Our property survey service is listed as one of the best in the whole of the UK! Take a look at our Trustpilot page and see why everyone chooses us as their property survey provider.
Our vast experience in the local property survey market has made us the number one choice when it comes to surveyors. We offer a top-level service at affordable prices, the cost of our surveys is based on the number of rooms in your property, not their value, so our prices are always better than the competition.
At HICH LTD we are pleased to do our bit to make the world a better place, that’s why we continually partner with NGOs and other institutions to join forces in environmental, social and charitable causes. If you want to know more about our efforts or want to know how you can help, contact us at hichinfo@aol.co.uk.
Are you looking for a roof, structural, or bespoke survey? Request it here!
Follow us on our social networks to keep up to date with the most relevant property market news, tips for being a responsible homeowner, and much more!
Twitter: @HICHLTD
Facebook: HICH-LTD
