Mortgage Lending (Oct.)

Mortgage approvals remained robust in October after the end of the stamp duty holiday, only easing back into line with their pre-pandemic average. With demand strong, we suspect that mortgage approvals will move back above pre-virus levels in 2022, although limited inventory could be a constraint.
Andrew Wishart Property Economist
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London transactions outperform, but not prices

The jump in transactions during the pandemic was larger in London than other regions as the market didn’t experience the same drop in supply as elsewhere. That reflected many existing homeowners adjusting to remote working by moving further afield, giving an opportunity for first-time buyers to get on the London housing ladder. More plentiful supply has also caused house price growth in the capital to underperform the national average since the start of the pandemic. While house prices rose by 16% between Q4 2019 and November 2021 nationally, the average increase in London was 9%. Outer London boroughs tended to outperform more central areas, but Hammersmith & Fulham, Kensington & Chelsea, and Islington were striking exceptions.

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The anatomy of the pandemic price boom

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19 January 2022

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300,000 supply target remains out of reach

The most comprehensive statistics on housing supply confirmed that the pause in construction in Q2 2020 caused completions of new homes to drop back. Housebuilding activity has since recovered but materials shortages, the end of the Help to Buy Equity Loan scheme, and a cooling market suggest that the high water mark for new housing supply has already been and gone.

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Where is all the stock?

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Little sign of momentum in prices abating

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19 November 2021
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