Early predictions of a pre-election slump in the house market have been shattered by findings from the British Bankersí Association (BBA), who reported a 7% increase in the number of mortgage approvals from March to April.
The number of mortgage approvals reached 42,116 ñ the highest number since June 2014, and the 7% increase to this figure is the fastest increase since September 2013. The jump is thought to be at least in part down to the abolition of Stamp Duty in Scotland, which was replaced there by the Land and Buildings Transaction Tax in April.
Initial reports based in part on rich buyersí worries about the Labour partyís proposed mansion tax (which would have affected all homes worth over £2 million) claimed that the housing market was slowing before the election. The BBA have turned the table on these reports, with chief economist Richard Woodhouse claiming ìThere was a significant pre-election jump in mortgage approvals which we would expect to continue in the coming months.î
Howard Archer of HIS Global echoes Woodhouseís sentiments regarding the positive outlook for the future, claiming that ìthe housing market will benefit from reduced uncertainty following the decisive general election resultî.
However, others, like Capital Economics housing economist Matthew Pointon, are slightly more pessimistic, claiming that it is unlikely that we will see the dizzying heights that the mortgage market reached in the latter half of 2013 any time soon.
ìA lack of available stock continues to dissuade buyers from entering the marketî he said.
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