Home sales bounce back

The number of mortgage approvals made last year beat 2019 levels – despite the housing market being effectively shut for part of the year because of the coronavirus crisis.

The Bank of England said that – at 818,500 in 2020 – he number of mortgage approvals for house purchase was higher than the 789,100 in 2019.

Approvals hit a record low of 9,400 in May, but picked up sharply in the second half of the year, the Bank's Money and Credit report said.

A temporary stamp duty holiday – in place since July – is due to end soon.

Nitesh Patel, strategic economist at Yorkshire Building Society, said: "An active market came to a hard stop in March. but when the market reopened last summer, the rapid uplift in activity took many by surprise.

"Stamp duty relief has been the biggest driver.”