The stamp duty extension announced by the chancellor in the Budget last week came as a huge relief to buyers stuck in transaction logjam.

An additional 300,000 transactions in England could benefit by the end of June from the stamp duty extension announced in the Budget, according to estimates.

Prior to last week’s stamp duty holiday extension announcement there had been a surge in transactions as buyers rushed to beat the stamp duty holiday deadline.

Government figures recently showed that the number of UK residential property transactions increased sharply in January to hit a 10-year high, likely fuelled by the rush to beat the stamp duty deadline on 31 March, despite speculation that it would be extended.

According to data published by HMRC, the provisional seasonally-adjusted estimate of UK residential transactions in January was 121,640, up 24.1% year-on-year.

Addition data released yesterday by the Bank of England support the figures provided by HMRC.

The latest Mortgage Lenders and Administrators Statistics reveal that the value of new mortgage commitments in Q4 was 24.2% higher than a year earlier, at £87.7bn, and the highest level since 2007.

Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “Although a little dated, these comprehensive figures clearly illustrate the tidal wave of transactions trying to take advantage of the stamp duty holiday, prior to its recent extension.

“Since a pause in January and early February, speculation about the 31 March deadline being moved, easing of lockdown and success of the vaccination rollout, have all resulted in the tearing up of many house price fall predictions.

“As a result, we are likely to see a market much more balanced between supply and demand but fewer sales as so many buyers and sellers brought forward their decision-making.”

But new lending commitments for 2020 in total was £268bn, down 4.7% on 2019, owed largely to the first lockdown last year.

The share of new mortgage lending with LTVs over 90% was 1.2% in Q4, 4.5% lower than a year earlier and the lowest level since these statistics began in 2007, as high-LTV mortgage availability remained low.

The proportion of lending to borrowers with a high loan to income ratio increased by 2% on the quarter to 50.2%, the highest since the series began.

Mark Harris, chief executive of mortgage broker SPF Private Clients, commented: “With new mortgage commitments 24.2% higher than a year earlier and at their highest level since 2007, the Bank of England figures illustrate the strength of the uptick in the housing market as we headed towards the end of the year.

“The experience of lockdown and subsequent desire for more space, combined with the stamp duty holiday and record low interest rates, have persuaded many to take the plunge and move.

“High loan-to-value mortgages were harder to come by as lenders reined back on 90% and above. The government’s decision to introduce a mortgage guarantee to encourage lenders to offer 95% mortgages once more will make a difference to first-time buyers and others who simply can’t raise a significant deposit.”