House purchases hit all-time record level in June
House purchase lending volumes in June reached the highest monthly level on record, said UK Finance.
The trade association for banks added that the second quarter of 2021 was the highest quarter for house purchases in 13 years, as buyers rushed to beat the Stamp Duty holiday deadline.
Eric Leenders, managing director, Personal Finance at UK Finance, said: “There was unprecedented demand in the housing market in Q2 2021 as people sought to take advantage of the Stamp Duty holiday, with changes to working and living patterns encouraging more homeowners to use their existing equity, either to move further afield or to fund additional house purchases for themselves or family.
“With the holiday now in its final tapering phase, demand was expected to decline, however applications towards the end of the quarter and into Q3 remain higher than before the pandemic began, as we continue to witness the “race for space”.
Martijn van der Heijden, chief financial officer at mortgage broker Habito, added: “The ‘race for space’ of June was driven by the Stamp Duty relief deadline as the more affluent home-buyers scrambled to secure their tax savings.
“Since then, the summer has been a radically different picture. Following an initial slow-down post cliff-edge, the property market is starting to normalise and find a healthier rhythm that’s more consistent with UK home-buyers across the board.
“The drop in unemployment and the nation’s record-breaking savings deposits are no doubt fuelling lender confidence and overall housing market recovery.”