It’s business as usual for buoyant home buyers

MORTGAGE lending in the month following the Brexit vote has proved resilient, latest figures show.

Home loans worth £21.4billion were rubber-stamped in July, only a slight dip on June’s total of £21.5billion, according to the Council of Mortgage Lenders.

The figure was just one per cent lower than July last year as buyers took advantage of record low interest rates to borrow cheaply.

John Eastgate, of OneSavings Bank, said: “The early indications are that fears of a significant slump in the immediate aftermath of the EU referendum have been overblown somewhat. While the medium to long-term economic impact of the decision is far from clear, the mortgage market would appear to be in business as usual mode.

“Buyers and in particular investors who are in a position to enter the market are just getting on with it rather than sitting on their hands and waiting for the political and economic uncertainty of Brexit to dissipate.

“Moreover, the Bank of England’s package of monetary stimulus measures opens up the possibility of even cheaper mortgage products.

“This will continue to stimulate buyer demand, as well as supporting buoyant remortgage activity as borrowers look to take advantage of the incredibly low rates on offer.”

Jeremy Leaf, a north London estate agent, said: “The market is settling down and proving more resilient than many people have given it credit for. We are hopeful that, as more people return from holidays, the traditionally busier autumn season will live up to expectations.” A stamp duty rise for buy-to-let investors has caused more disruption to the housing market than the referendum, say property experts.

The increase came into force on April 1 and investors rushed to snap up properties before the deadline. Sales were bunched early in the year and this meant later figures could be skewed.

Richard Sexton, director of e.surv, said: “These figures may be distorted somewhat by the rush to push through completions quickly at the beginning of the year, ahead of April’s stamp duty changes.

“Despite this lull in activity we are still seeing a broadly positive sentiment from brokers, lenders and consumers alike.

“For many, there was somewhat of a watching brief in July as they waited to see what impact the Brexit vote would have. Now, however, the ‘keep calm and carry on’ attitude seems to be prevailing once again.”

Property prices are also buoyant, according to the latest Hometrack UK Cities Index.

Annual UK house price inflation in July was 9.5 per cent with Northern cities such as Leeds, Manchester, and Liverpool seeing rises of between seven and eight per cent.