BoE Money & Credit stats: Uptick in mortgage lending shows property market rebounding strongly – comment from Hope Capital
The Bank of England this morning published its monthly Money & Lending statistics for June 2020, showing an increase of 120% in the value lending against property compared to the previous month, with the number of loan approvals also rising more than 85%. https://www.bankofengland.co.uk/statistics/money-and-credit/2020/june-2020
Jonathan Sealey, CEO of Hope Capital commented on the figures:
“Although the June figures are still some way off pre-coronavirus levels, there is bound to be a time-lag as market activity resumes. Overall, there’s encouraging evidence that the property market is rebounding slowly but surely from lockdown. That is in line with our experience at Hope Capital, where we have seen a sharp increase in demand, with enquiries and applications both going through the roof over the last two months.
“It’s already clear that the ‘new normal’ will present opportunities, particularly in the residential market, to investors looking to meet people’s changing needs in the wake of Covid-19.
“Recent policy changes regarding the extension of permitted development rights and converting commercial property to residential use, will fuel further demand for specialist finance, alongside what we hope will be a sustained recovery in the mainstream mortgage market.
“The Stamp Duty holiday announced earlier this month will have a short-term stimulus effect but the Government needs urgently to consider longer-term measures to sustain the property market, which acts as an engine for wider economic recovery.
“Specialist lenders are ideally suited to meet the changing needs of borrowers. The key is to be flexible and go the extra mile to understand and respond to their individual circumstances.”
Published: 29 July 2020