Nitesh Patel, Strategic Economist at Yorkshire Building Society, for comment on the performance of the housing market and the Bank of England's Money and Credit report.

The national housing market continues to perform well. The amount people collectively borrowed to buy houses grew from £4.6 billion in February to almost £7 billion in March, the highest monthly level since the final month of Stamp Duty relief last September when it hit £9.3 billion.

“A more accurate measure of market conditions and activity is the volume of mortgage approvals – this figure reached 70,691 in March and, whilst marginally down on February, it is still well above the pre-pandemic average of 65,700.

“Current activity still appears to be driven by buyers re-evaluating their housing needs, particularly for more space in less densely populated areas. That said, there have been reports suggesting the re-emergence in demand for city centre flats. Low borrowing costs and a strong labour market are also playing a key role in supporting the housing market.

Households, in aggregate, continue you save. However, in the past couple of months the amount people have put away has dipped below the pre-pandemic average of £4.7 billion per month. Consumer credit also grew by £1.3 billion in March following the £1.6 billion increase in February. These could be early signs of the cost of living crisis as households resort to borrowing to finance spending.

Housing market performs well as savings dip below pre-pandemic average

Media contact: Gary Brook, Yorkshire Building Society, 07866 455111 / gbrook@ybs.co.uk