Mortgage Solutions: House purchase approvals rise 17% YoY - Bank of England
Wed 02 Dec 2015
Mortgage approvals for house purchases rose by 17% year-on-year in October to 69,630 agreed transactionsvalued at 12.2bn, statistics from the Bank of England reveal.
Remortgage approvals rose by 27% year-on-year to 39,629 agreed transactions in October worth 6.8bn.Compared to the previous month's approvals, house purchases rose by 0.9% while remortgaging dropped by3.3%.Both categories of lending exceeded their six-monthly averages of 68,099 for house purchases and 38,430 forremortgages.Approvals for other purposes were 12,178 compared to an average of 11,297 over the previous six months.Total secured lending increased by 3.6bn in October to hit 20.1bn. This compares to the average monthlyincrease of 2.8bn. Repayments in October were 17bn.The Council of Mortgage Lenders has predicted that gross mortgage lending for 2015 will be 209bn and willincrease to 220bn by 2016 year-end.
Peter Rollings, CEO of Marsh & Parsons, said Osborne's plans to add a Stamp Duty premium of 3% to secondhomes and buy-to-let properties will create in a stir in the market in the months to come.
"These figures only look at October, George Osborne's package of housing announcements in the AutumnStatement last week will have keyed up a new wave of first-time buyers eager to get their foot in the door," saidRollings. "We may also see a winter flurry of buy-to-let borrowing before April's Stamp Duty shake-up, aslandlords seek to invest before the additional charge is levied on second homes."The big question as we enter the New Year is whether the supply of homes will match the increasing demandthat's clearly evident in the mortgage market."