Surpassing the previous height – Comment on the BoE money and credit figures for October

Following the BoE money and credit figures this morning, Richard Pike, sales and marketing director at Phoebus Software, says “Whilst it is no surprise that the number of mortgage approvals continues to rise, given the current stamp duty incentive, it is nonetheless surprising to see the figure surpass the previous height in 2007. However, it is not only the stamp duty saving that is driving the market, there is also the number of people looking to escape city life since the lockdown. And, as the ‘working from home’ culture continues this is likely to endure past the limitations imposed by Covid-19.

“The problem then will be the age-old one of supply and demand. Despite the government’s promises, we are, according to the ONS last week, way behind our target for new housebuilding in the last year. With the knock-on effect of the pandemic, this is something that isn’t going to be fixed quickly. So, the mass exodus from our cities that has been predicted, could turn into a trickle come the spring.”