Tag Archives: year-on-year
First time buyers keep UK mortgage lending going in second quarter 2016
Home buyers in London borrowed £5.5 billion in the second quarter of 2016, down 23% compared to the previous quarter and down 3% year on year, the latest data shows. It was first time buyers who kept the market going in London, borrowing 10% more while those remortgaging borrowed less, the figures from the Council of Mortgage Lenders (CML) shows. They also increased in Scotland and Wales. Overall borrower took out 17,500 loans, down 17% on the previous quarter and 8% compared to the second quarter 2015 but first time buyers borrowed £3 billion, up 3% on the first quarter and 10% compared to the second quarter last year. This equated to 10,800 loans, up 3% quarter on quarter but down 1% year on year. Home movers borrowed £2.5 billion, down 41% on quarter one this year and 14% compared to a year ago. This equated to 6,700 loans, down 37% quarter on quarter and 18% year on year. The figures also show that remortgage activity totalled £4.3 billion, up 6% on the first quarter 2016 and 29% compared to a year ago. This came to 14,200 loans, up 5% quarter on quarter and 19% compared to a year ago. ‘First time buyers have continued to drive mortgage lending in London, with 10% more first time buyer lending in the second quarter than the first. The opposite is true for home movers, probably just reflecting a rebalancing after the very strong first quarter as many buyers sought to complete purchases before changes to stamp duty,’ said Paul Smee, director general of the CML. ‘The second quarter data largely pre-dates the European Union referendum. While it will take time to see how Brexit may affect the market, the London mortgage market clearly remains active and firmly open for business,’ he added. First time buyers were also key in Scotland, borrowing £920 million, up 42% quarter on quarter and 2% year on year, some 8,500 loans, up 39% quarter on quarter and 4% year on year. Home movers borrowed £1.2 billion, up 11% quarter on quarter but down 5% compared to a year ago. This totalled 8,100 loans, up 11% quarter on quarter but down 9% year on year. Remortgage activity totalled £850 million, up 9% both on the first quarter 2016 and the second quarter 2015. This came to 7,100 loans, up 11% quarter on quarter and 4% year on year. Carol Anderson, CML Scotland chair, pointed out that it is the 19th successive quarter of growth in first time buyers compared to a year earlier and the highest quarterly number of first time buyer loans since the middle of 2007. In Wales first time buyers borrowed £420 million, up 31% on the first quarter and 24% on the same period last year. This totalled 3,800 loans, up 31% quarter on quarter and 19% year on year. Home movers borrowed £490 million, down 6% on the first quarter of the year but unchanged compared… Continue reading
Asking prices up in England and Wales but down in London
Asking prices in England and Wales have reached a record high despite the looming vote on the future of the UK in the European Union, the latest index report shows. Housing market momentum continues to push up the price of property coming on to the market up with a rise of 0.8% or £2,320 to new high of £310,471, according to the June report from property portal Rightmove. Desire to buy and lack of supply is affecting the market with the time to sell falling to 57 days, the fastest ever measured by Rightmove. But there is some signs of referendum associated uncertainty with fewer new sellers coming to market as new properties for sale were down 5.3% compared to average at this time of year with the most reluctant being owners of larger homes with four or more bedrooms who have dropped by 6.6%. A breakdown of the figures show that in the North East asking prices increased by 0.1% month on month and 3.1% year on year to an average of £148,662 while in the North West they were up 2.2% month on month and 4.2% year on year to £183,482. In the West Midlands there was a month on month rise of 1.4% and year on year asking prices were up 4% to an average of £209,273 and in the East Midlands up 0.6% and 4.8% respectively to £198,090. There was a month on month rise of 0.6% in Yorkshire and Humber and year on year asking prices are up 2.6% to an average of £178,388 while in the East of England they were up 1.2% and are now 9.4% above a year ago at £338,499. In the South West there was a 1.4% month on month rise and year on year an increase of 5% to an average of £302,022. In the South East asking prices rose 0.7% month on month and are 6.9% higher year on year. In Greater London price growth is slowing with a month on month fall of 0.2% and asking prices are now 4.8% higher than a year ago at £643,117. Meanwhile growth has been steady in Wales, up 1.4% month on month and 6% year on year to £185,145. Overall, there have been price rises every month so far in 2016, showing that the uncertainty associated with the EU referendum has failed to halt this year’s upwards price momentum, according to Miles Shipside, Rightmove director and housing market analyst. He pointed out that this is in contrast to the run-up to the May 2015 general election, when the electoral uncertainty resulted in a price fall of 0.1% in the month of the election. ‘This year the first quarter buy to let surge has exacerbated the shortage of suitable property for sale, and with ongoing buyer demand fuelled by cheap mortgage money, there appears to be greater resilience. The result is that the average time it takes to sell a property is at its lowest level… Continue reading
