The number of mortgage approvals for house purchases increased from 85,500 in August to 91,500 into September, according to the Bank of England’s Money and Credit report
A housing market mini-boom has sent the number of mortgage approvals sky-rocket to a new 13-year high.
The mini-boom suggests that the current stamp duty holiday, and pressure to move to larger properties since the lockdown began, is fuelling demand for those looking to move or get on the property ladder.
Bank of England figures and estate agents claim there is now a ratio of 13 potential buyers to every available property as house hunter numbers rise.
The number of mortgage approvals for house purchases also continued to increase into September, to 91,500 from 85,500 in August, the Bank of England’s Money and Credit report explained.
This was the highest number of approvals since September 2007, and 24 per cent higher than approvals in February 2020.
The Bank’s figures however, for remortgaging approvals, which only capture remortgaging with a different lender, show a slight dip compared with August, at 32,700, which is 38 per cent lower than in February 2020.
Howard Archer, the chief economic adviser to EY ITEM Club, explained, September’s 13-year high for mortgage approvals provides clear evidence of the marked pick-up in housing market activity that has occurred since pent-up demand was released by the easing of restrictions from mid-May onwards.
He said, this buoyancy has been reinforced by the Chancellor raising the stamp duty threshold to £500,000 from mid-July through to March 31, 2021.
The figures which were released as the National Association of Estate Agents (NAEA) Propertymark said the number of prospective home buyers reached a 16-year high in September.
It said the number of prospective buyers registered per estate agent branch leapt by a third month-on-month.
This was the highest number of house hunters recorded since June 2004.
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