UK mortgage lending hits record amid stamp duty rush | Mortgages

Mortgage borrowing within the UK has reached its highest stage since trendy data started as consumers rushed to beat the now-extended stamp duty vacation deadline.

Bank of England figures confirmed that Rishi Sunak’s resolution within the price range to increase the tax break till June got here too late to cease a burst of exercise within the housing market in March.

Although the variety of new mortgage approvals dropped from 87,000 to 83,000 in March, they remained increased than the 73,000 recorded in February 2020, the final month earlier than the UK went into its first pandemic-induced lockdown.

The completion of offers took internet mortgage lending to £11.3bn in March – increased than in any month because the sequence started in 1993. With lockdown measures affecting bars, eating places, outlets and different leisure actions, shoppers continued to repay bank card money owed, with the Bank reporting internet repayments of £500m in March.

Separately, an replace on the state of producing confirmed that regardless of grappling with provide shortages, business put in its strongest efficiency because the mid-Nineties in April. The remaining buying managers’ index from Markit/CIPS stood at 60.9 final month, barely up on the preliminary, flash estimate of 60.7, and effectively above the 50 dividing line between growth and contraction.

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The report confirmed manufacturing manufacturing rising for the eleventh successive month, with output progress boosted by an easing of lockdown restrictions, improved demand and rising backlogs of labor.

Rob Dobson, a director at IHS Markit, stated: “Further loosening of CCovid-19 restrictions at home and abroad led to another marked growth spurt at UK factories. The headline PMI rose to a near 27-year high, as output and new orders expanded at increased rates. The outlook for the sector is also increasingly positive, with two-thirds of manufacturers expecting output to be higher in one year’s time. Export growth remains relatively subdued, however, as small manufacturers struggle to export.

“The sector also remains beset by supply-chain issues and rising inflationary pressures. Disruption following Brexit and Covid-19, especially at ports, caused a further near-record lengthening of supplier delivery times. The resulting input shortages kept producer price inflation among the highest over the past four years.”

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