Comment: BoE figures show “all hands to the pump” in the housing market

Following the news from the Bank of England that households borrowed an additional £4.3 billion secured on their homes in October and the number of approvals hit the highest number since September 2007, John Goodall, economist and CEO of Landbay, says, “The Chancellor’s housing market stimulus, in the form of the stamp duty holiday, has taken house purchase of to a level that none of us expected back in April, at the start of the pandemic. There has been a positive rush to buy houses both residential and buy-to-let. The start of the year was reminiscent of boom times and we are matching that again now with some record weeks.

“While of course the overall the number of housing transactions this year will be less than it would have been without the pandemic, the Chancellor’s intervention has meant that many of those who want to buy have been able to. Combine this with record low mortgage interest rates and it is a very good time to buy for those who can afford to do so. The rush now will be to get those deals over the line before the stamp duty holiday ends, with valuers, conveyancers and many big lenders facing backlogs, it will be all hands to the pump until March 31st.”