Net mortgage borrowing in October stood at £ 1.6bn, according to new statistics from the Bank of England (BoE), significantly lower than the £ 9.3bn recorded in September and the highest amount low recorded since July 2021.
The BoE says the drop was driven by borrowing “postponed to September to take advantage of the stamp duty relief before it is completely cut.”
Gross lending fell from £ 30.7 billion in September to £ 19.3 billion in October.
Meanwhile, home purchase approvals also fell from 71,900 to 67,200 on a monthly basis, while these rose in value to £ 14.6 billion in October.
Remortgaging approvals moved slightly in the opposite direction, totaling 41,600 worth £ 8.7 billion. According to the BoE, this is the highest number of remortgage approvals since March 2020.
Jeremy Leaf, North London real estate agent and former residential chairman of Rics, said: “These figures are interesting because they show a tipping point for the real estate market as the impact of the stamp duty holiday and the number of early purchases have been laid bare.
Nonetheless, we have found on the sharp end that there are still many who are trying to take advantage of low interest rates before their seemingly inevitable rise and buy houses rather than apartments, which are still lagging behind. in popularity issues, especially those without outdoor space.
“We don’t see too much change, although we expect the rebound in listings between December and January to be stronger than usual as buyers and sellers embrace the new normal.”
And Phoebus Software Sales and Marketing Director Richard Pike comments, “The problem in the market right now doesn’t seem to be appetite, it’s more of a supply issue.
“With Propertymark reporting an average of 24 buyers per home in the market, this is becoming almost untenable. Add to that the fact that we are not building the number of houses we should be and the supply issue is, as always, a huge stumbling block to the long term health of the housing market.
“Nonetheless, the fact that the prospect of higher interest rates does not discourage people from looking for new accommodation is encouraging in itself.
“It will be interesting to see if the current appetite continues in the face of other potential coronavirus measures as the government assesses the threat of this new variant. “