The housing market is now bigger than before the pandemic as first-time buyers return to the market, according to a new report.
Research by Savills shows that total spending on house purchases broke through the £350billion barrier in the year to the end of June.
The recovery was fuelled by £88.3billion spent in the second quarter of this year, according to a report in the Times this morning.
This had been driven by a 22% rise in the amount of mortgage debt forwarded by lenders, Savills said.
Lucian Cook, of Savills, said the housing market was expected to expand further over the next year.
“Lower mortgage costs will encourage a wider range of buyers back to the housing market,” he said.
“In particular, we should see an increase in upsizers, who put plans to trade up the housing market on hold in the face of higher mortgage costs.
"This cohort is likely to be at the forefront of that growth, although some may wait until after the government’s October budget before taking the leap.”
Savills used data from HM Revenue & Customs, the Office for National Statistics and the Bank of England.