Figures released last week by the Bank of England has shown that UK homeowners have borrowed a record £11.8bn on mortgages, which is the strongest since records began in 1993.
The net borrowing level was the highest this month since comparable data which began in 1993. The previous peak was in October 2006, at 10.4bn. Consequently, this has encouraged some homeowners to move in time to beat the tax relief deadline or to borrow more to improve their current property. In addition, there has been a stampede of home buying since it was announced that the stamp duty holiday was extended, which was applied to support the market under strain from the COVID-19 pandemic.
Mortgage borrowing signals future high demand to buy homes, and analysts have said that the UK housing market has been “on the boil” during spring. Figures released by Zoopla at the end of April reported that demand for UK properties has risen by 27.5% in 2021, when compared to average levels in 2020.
Anthony Lomas, Partner at Boxall Brown & Jones added “this mortgage data highlights the rush we are seeing as people are buying and saving thousands of pounds on stamp duty. We remain positive that this demand continues as we ease out of lockdown.”