The average asking price of homes is at a record high, supported in part by the stamp duty holiday
Mortgage approvals last month reached their highest number since September 2007 amid pent-up demand in the housing market, the latest figures from the Bank of England show.
The number of mortgage approvals for house purchases increased to a 13-year high of 91,500 in September from 85,500 in August.
The September approval figures were 24% higher than approvals in February, before the coronavirus pandemic.
Households borrowed heavily to purchase property in September, with net mortgage borrowing at £4.8bn, up from £3bn in August.
It is the latest evidence that the recovery of the housing market post-lockdown is continuing, with the average asking price of homes coming on to the market in Britain now at a record high, supported in part by the existing stamp duty holiday.
Craig McKinlay, new business director at Kensington Mortgages, commented: The temporary reform of stamp duty and pent up demand has provided a boost for the property market. Despite there being less product choice available, September is traditionally a busy month of activity for the market, and mortgage approvals have shot up to their highest rate since September 2007.
But McKinlay says that these results do not reflect the fact that many first-time buyers and self-employed borrowers are being left behind “in this mini-market boom – unable to take advantage of the stamp duty holiday”.
He added: Mortgage lenders need to be as flexible as possible to accommodate these individuals and use manual underwriting approaches to assess an individual’s affordability on a case by case basis.
With payment holidays and the government’s furlough scheme coming to an end, lenders will be faced with another priority – supporting borrowers who continue to face financial hardship beyond October, according to Steve Seal, managing director at Bluestone Mortgages.
The articles are for information purposes only and Invest for Property shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.
Invest for Property does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.
Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.