Housing market perks up

THE housing market roared back to life last month amid signs the General Election result boosted confidence.

Lenders approved 46,815 mortgages for house purchase in December, the most since August 2015, according to trade association UK Finance.

Analysts said demand for houses has perked up since Boris Johnson’s thumping victory over Jeremy Corbyn.

But many of the mortgages that were approved in December would have been applied for before the election in a sign that the market was picking up before polling day.

Sam Harhat, head of financial services at estate agent owner Andrews Property Group, said: ‘It’s clear that many people refused to let politics put their lives on hold.’

Howard Archer, chief economic advisor to forecasting group, the Ernst & Young Item Club, said some families were keen to move before the election ‘in case it had resulted in any shocks’ and made moving after more difficult.

He added: ‘It is highly likely that mortgage approvals in December were significantly lifted by increased confidence and reduced uncertainties following the decisive General Election result.’

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said the jump in lending in December followed cuts to mortgage rates in the second half of last year.

And he said a further pick up in lending was likely this year.

‘All the evidence so far points to a further rise in demand after the election.’