Mortgage Lending Bounces Back – Enness Comments in MSN News

The housing market showed early signs of recovery following the disruption caused by the national lockdown. Mortgage approvals increased to 40,000 in June, up from just 9,300 in May and exceeding market expectations.

Although new mortgage approvals remained below pre-lockdown levels, the rapid increase in lending activity following the easing of restrictions suggested that buyer demand was beginning to return.

Estate agents also reported increased activity, including a rise in valuation requests. The Nationwide House Price Index provided further evidence of improving market conditions, with UK house prices rising by 1.7% in July following a 1.6% decline in June.

In July 2020, the Government temporarily increased the Stamp Duty threshold in England and Northern Ireland from £125,000 to £500,000. The measure was designed to support the housing market and reduce the upfront cost of purchasing a property, with eligible buyers benefiting from significant potential savings until 31 March 2021.