UK house prices: mortgage applications surge as house prices rise at fastest rate in four years

In the last three months there has been more mortgage applications from first-time buyers and homemovers than anytime since 2008.
Daniel Lynch

The post-lockdown property boom is gathering pace with prices surging faster last month than at any time since the European referendum more than four years ago.

Huge demand for mortgages has been fuelled by a combination of pent-up demand, the Chancellor’s stamp duty holiday and a desire for more space.

The average cost of a home in Britain jumped 1.6 per cent in September alone to £249,870, according to latest figures from mortgage lender Halifax. This lifted annual growth to 7.3 per cent, the highest since June 2016.

Managing director Russell Galley said: “Few would dispute that the performance of the housing market has been extremely strong since lockdown restrictions began to ease in May. Across the last three months, we have received more mortgage applications from both first time buyers and homemovers than anytime since 2008.

“There has been a fundamental shift in demand from buyers brought about by the structural effects of increased home working and a desire for more space, while the stamp duty holiday is incentivising vendors and buyers to close deals at pace before the break ends next March.”

However, he also warned that the end of the furlough scheme and rising unemployment over the winter is likely to put “significant downward pressure on house prices...at some point in the months ahead.”