Mortgage demand in London returns to pre-pandemic levels

Mortgage applications in London now account for 14% of all applications across the UK, a level not seen since December 2019, new analysis by Trussle has found.

Overall, applications for mortgages in London have increased by 30% in recent months, according to the data.

Trussle said that the desire for city centre property initially declined during the coronavirus pandemic, as remote working became more common and amenities remained closed. However, the online mortgage broker is now reporting a return to city centres across the UK.

The broker’s research showed that Manchester has also proved an attractive destination for buyers, with demand for mortgages now at double the level compared with 2019. Trussle suggested this could be due to more competitive property pricing with the average home in Manchester costing £234,024, compared with London’s £698,289.

“With high-streets back in business, the allure of city living is returning,” said Trussle head of mortgages, Miles Robinson.

“This is clearly beginning to resonate with buyers, and we are seeing interest in city centre properties up and down the UK either return to pre-pandemic levels, or higher. 

“Another reason for this could be the return of office working, albeit in a reduced capacity. While remote working was necessary during the height of lockdown, many businesses are moving to a hybrid model that does require people to be in the office two to three days per week. As such, many people may feel the need to be closer to their place of work than they did a year ago.”

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