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UK Finance figures for Q1 2021 released today finding a surge in house purchasing

John Phillips, national operations director, Just Mortgages and Spicerhaart said:

“The trends from the first quarter of 2021 demonstrate the remarkable recovery the housing market has undergone since it re-emerged from the lockdown last spring.

“While the stamp duty has certainly spurred a few into action, the figures show credit card borrowing fell, and deposits in savings have increased significantly in Q1 and both of these are helping fuel the current rush for properties.

“One area that is particularly encouraging is the increasing number of first-time buyer completions. When the pandemic initially hit, the lack of 95% LTV mortgages restricted the ability of a lot of first-time buyers to get a foot on the ladder.

“However, the recent data shows that the return of high LTV products, combined with increased savings has helped a significant number of new buyers onto the market.

“One potential indicator for the future of the housing market is the increase in credit card spending towards the end of the quarter. With hospitality opening back up, and international travel set to return, this may result in some choosing to spend on holidays and socialising, putting house-buying on the backburner for a month or two.

“While a few may delay moving, there are still a huge number of buyers in the market, and demand is still outstripping supply significantly. Therefore, the market should continue its impressive run, while perhaps slowing slightly in the coming months.”

Published: 03 June 2021