In this update we note that residential transactions reached a record high in Q1 with 456,000 residential properties changing hands; 191,000 in March alone thanks to the expected end of the stamp duty holiday.
This was up from 347,000 transactions in Q4 2020 and was more than double March 2020 transactions.
Although we have seen mortgage approvals ease slightly, there are currently no signs of residential market activity slowing. The extension of the stamp duty holiday, along with new 95% LTV mortgages will help sustain momentum in the short term, however house prices are also still continuing to steadily grow and we expect this to continue into next year.
In the report, we also note:
- The number of house building completions hit a record high of almost 47,000 in Q4 2020
- Housing starts rose to a two-year high of 42,000 in Q4, from 36,000 in Q3 2020
- 82,735 mortgages were approved, 30 per cent above the five-year monthly average of 67,100
- The average mortgage taken out stands at £216,591 in Q1 2021, up from £204,621 in Q1 2020 and the highest figure on record
- 94,364 BTR units are in the planning stage, an increase of 31% on the Q1 2020 level and the highest quarterly figure on record. The total BTR pipeline is 130,418, 20% higher than the corresponding 2020 figure
