The number of mortgages approved by UK lenders remained well above the long term average in February as buyers sought to squeeze deals in ahead of the March end of stamp duty holiday. Last month, the government extended that deadline to the end of June.

Banks issued 87,700 loans for the purchase of homes during the month, according to Bank of England data published this week. That’s down from a peak of 103,700 back in November, but well above the six month average of 67,300.

We expect housing market activity to remain well above historic norms over the coming months, partly due to the extension of the Stamp Duty Land Tax (SDLT) holiday, but also as buyers begin to establish what post-pandemic life looks like.

We also believe there is a large pool of buyers that have decided to move home, but are waiting until normal life resumes to do so. Plus, the nation's working patterns will continue to drive property market demand for many months to come.

The data is already beginning to show a moderation in buyers seeking homes in very rural locations in favour of those closer to towns and cities as the return to office working draws nearer.

The three areas of England and Wales that experienced the biggest increase in the number of properties that went under offer following the first lockdown in March 2020 were North Devon, Ribble Valley and Derbyshire Dales – all areas with an abundance of green space.

At the turn of this year, the trend has taken on a distinctly more urban flavour: the largest increases in the six months to March have taken place in the London borough of Brent, Wrexham and Hartlepool. Local authorities including Dartford and South Tyneside make up the top ten, as the table in this article shows.

It's clear the mortgage lenders are taking note of the raft of economic indicators suggesting that both output and unemployment are proving more robust than their expectations just a few weeks ago. As a result, the banks are seeking to build market share and position themselves for an economic rebound likely to start in the next quarter. That is being reflected in attractive lending conditions, from pricing to product choice.

With interest rates at record lows and official forecasts suggesting an economic recovery is imminent, now is a good time to take stock of your borrowing. To assess your options, please get in touch.