BoE comment: Housing market looking healthy

29 June 2021

John Phillips, national operations director, Just Mortgages and Spicerhaart said:

“Mortgage approvals are still remarkably high, all things considered, and the market doesn’t look set to grind to a halt any-time soon. The approvals in May are highly unlikely to complete in time for the stamp duty deadline, so it is safe to assume that these purchases are not motivated by the tax savings.

“Rates are returning to close to pre-pandemic levels, and clients are still rushing to find a new home. Houses are still the hottest property, with summer now here plenty are looking for a garden to enjoy the warmer weather.

“Interestingly May was the first month since August 2020 that consumers borrowed more than they paid off in credit. With the return of hospitality and shops re-opening, it appears consumers are now spending again.

“While this is certainly great for the economy, and those industries particularly devastated by the pandemic, this may result in a slight reduction in activity in the housing market in the coming months, as people buy cars and look to start booking holidays.

“Despite this reduction, there is still an imbalance of buyers and sellers. And with house prices continuing to rocket, the market is certainly still looking healthy for the coming months.”