UK Mortgage Approvals Soar By A Record 827%
Mortgage approvals in the UK have surged by 827% as house prices recorded their highest growth rate since 2014 and the deadline for the stamp duty holiday edges closer.
The staggering year-on-year rise is mostly due to a locked-down housing market during the UK’s first lockdown back in spring 2020. In May 2020, mortgage approvals were at 9444. By contrast, and according to the Bank of England’s most recent figures, mortgage approvals in May 2021 were at 87,545. However, in November 2020, the figure reached 103,200. Net mortgage borrowing bounced back to £6.6 billion in May from £3 billion in April but had reached an impressive £11.4 billion in March.
Until 30 June, the threshold for stamp duty will remain at £500,000. These special rules, introduced to stimulate the housing market throughout the pandemic, were initially supposed to end back in March. Typically, stamp duty, a tax on property transactions in England and Northern Ireland, ranges from 2% to 12% of the property purchase price, depending on its value, the purchase date, and whether or not you already own a home.
Nationwide’s latest index shows that house prices are up 13.4% annually, with June seeing the third consecutive month-on-month rise of 0.7%.
Across England, yearly house price growth increased to 9.9%. Yorkshire and the Humber was the strongest performing part of the country. Prices were up 13% year-on-year, the strongest price growth for the region since 2005.