UK net mortgage borrowing hits record highs in the “red hot” housing market

UK homeowners are borrowing at record highs to take advantage of stamp duty holidays and low interest rates, new official figures reveal.

Net mortgage borrowings reached £ 11.8 billion ($ 16.4 billion) in March, the highest since the record began in 1993, according to statistics released Tuesday by the Bank of England.

Bank of England
The overview shows the Bank of England on November 5, 2020 and the City of London Financial District in London, England. (JohnSibley / Reuters)

House prices soared across the UK during the CCP (Chinese Communist Party) virus pandemic, despite the most significant economic downturn in a generation. The Resolution Foundation, a London-based think tank, called it “Very strange depression.. “

“The strength of the runaway housing market is reflected in the mortgage data,” said Mark Harris, CEO of Mortgage Broker SPF Private Client.

Simon Gammon, Managing Partner of Knight Frank Finance, said:

According to experts, continuous stamp duty vacations and low mortgage rates have led some homeowners to move to larger properties in more ideal locations.

The stamp duty holiday was scheduled to end in March, but has been extended. In April, a series of lenders launched a 5% deposit mortgage as part of a government-sponsored scheme.

Even those who aren’t moving are taking advantage of low mortgage rates to improve their traits, Harris said.

“Major changes in work styles and lifestyles, limited inventories, and brighter economic conditions are a powerful combination that is likely to boost activity and home prices during the summer,” Gammon said. Mr. says.

The COVID-19 pandemic may have changed the tastes of homeowners.

“We have seen tentative evidence that people who can work from home are taking advantage of this flexibility to move to locations outside the metropolitan area,” the Resolution Foundation said.

Think tanks have found that while prices are skyrocketing across the board, the rise is significantly more pronounced in less densely populated areas than in less densely populated downtown areas.

“Denser” type properties have also become less attractive, with home prices rising faster than apartment prices.

Jeremy Reef, a real estate agent in northern London and a former housing president of the Royal Chartered Surveyor Association of the United Kingdom, said: Balance between supply and demand. “

PA contributed to this report.

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