There has been a sharp rise in mortgage approvals, as reported by the Bank of England yesterday.
The latest data reveals that lenders provided 66,281 home-loan agreements last month, up from 39,902 in June, but there could yet be further room for growth, especially in the buy-to-let market, thanks in part to the current stamp duty holiday, according to John Goodall, CEO at Landbay.
Rishi Sunak has attempted to boost the housing market and boost confidence by introducing the stamp duty holiday.
The tax cut means movers and investors could save up to £15,000 until March 2021.
Goodall said: “This trajectory of increasing house purchases is what we would have expected as lockdown rules continue to be relaxed. The stamp duty holiday has clearly given the boost needed to encourage people to buy again although there is inevitably an amount of caution both from a health and a financial point of view.
“While we are yet to see the effect the end of the furlough scheme will have on residential purchases, I expect the number of transactions to continue to recover for the rest of this year and the first quarter of 2021, particularly in buy-to-let, as the demand for rental property continues to increase.”