Im­proved mort­gage lend­ing in most of the UK in 2Q

Financial Mirror (Cyprus) - - FRONT PAGE -

Lend­ing to home buy­ers im­proved across the UK in the sec­ond quar­ter of 2017, with mort­gages in Lon­don bounc­ing back and in Scot­land first time buy­ers driv­ing the most growth since 2007, ac­cord­ing to a re­port pub­lished by the news por­tal Prop­er­tyWire.

The lat­est data from UK Fi­nance shows that home buy­ers bor­rowed GBP 6.1 bln in Lon­don, up 11% quar­ter on quar­ter and 17% year on year. They took out 18,000 loans, up 6% com­pared to the pre­vi­ous quar­ter and 8% on the sec­ond quar­ter 2016.

First time buy­ers in Lon­don bor­rowed GBP 3.1 bln, up 10% on the first quar­ter and 8% on the sec­ond quar­ter of last year, equat­ing to 10,600 loans, up 5% quar­ter on quar­ter and 3% year on year.

Home movers bor­rowed GBP 3 bln, up 11% quar­ter on quar­ter and 28% com­pared to a year ago, some 7,400 loans, up 7% quar­ter on quar­ter and 18% com­pared to the same quar­ter in 2016.

“Home buy­ing in Lon­don bounced back from the tra­di­tion­ally sub­dued be­gin­ning of the year, with both first time buyer and home mover lend­ing show­ing growth both on the first quar­ter of 2017 and on the same pe­riod a year ago,” said Paul Smee, UK Fi­nance head of mort­gages.

“The hous­ing mar­ket in Greater Lon­don has some unique char­ac­ter­is­tics com­pared to the rest of the UK with more first time buy­ers, but lower over­all lev­els of home own­er­ship. Af­ford­abil­ity and the sup­ply of hous­ing re­main crit­i­cal fac­tors to man­age for the Lon­don mar­ket if pos­i­tive ac­tiv­ity is to con­tinue go­ing for­ward.”

In Scot­land home buy­ers bor­rowed GBP 2.5 bln in the sec­ond quar­ter, up 35% quar­ter on quar­ter and 18% year on year. They took out 18,800 loans, up 30% com­pared to the pre­vi­ous quar­ter and 15% on the sec­ond quar­ter 2016.

First time buy­ers bor­rowed GBP 1.1 bln, up 29% on the first quar­ter and 17% on the sec­ond quar­ter last year. This to­talled 9,500 loans, up 25% quar­ter on quar­ter and 15% year on year.

Home movers bor­rowed GBP 1.5 bln, up 39% quar­ter on quar­ter and 20% com­pared to a year ago. This to­talled 9,300 loans, up 37% quar­ter on quar­ter and 16% com­pared to the same quar­ter in 2016.

Re­mort­gage ac­tiv­ity to­talled GBP 900 mln, down 7% on the first quar­ter but up 7% on the same quar­ter last year. This came to 7,300 loans, down 10% quar­ter on quar­ter but up 4% com­pared to a year ago.

“There were more home buy­ers in Scot­land in the sec­ond quar­ter of 2017 than any other quar­ter since 2007. First time buy­ers have been a key driver of this, with two years of year on year growth,” said Carol An­der­son, chair of the UK Fi­nance Scot­land mort­gage com­mit­tee.

“With an eco­nomic cli­mate of low in­ter­est rates, gov­ern­ment schemes and com­pet­i­tive mort­gage deals, the Scot­tish mar­ket is in a good po­si­tion and open to busi­ness go­ing for­ward,” she added.

In Wales home buy­ers bor­rowed GBP 1.1 bln, up 26% quar­ter on quar­ter and 19% year on year. They took out 8,100 loans, up 23% com­pared to the pre­vi­ous quar­ter and 14% on the sec­ond quar­ter of 2016.

First time buy­ers bor­rowed GBP 490 mln, up 26% on the first quar­ter and 17% on the sec­ond quar­ter of last year, to­talling 4,200 loans, up 24% quar­ter on quar­ter and 14% year on year.

Home movers bor­rowed GBP 580 mln, up 26% quar­ter on quar­ter and 21% com­pared to a year ago. This to­talled 3,900 loans, up 22% quar­ter on quar­ter and 15% com­pared to the same quar­ter in 2016.

Re­mort­gage ac­tiv­ity to­talled GBP 470 mln, down 10% on the first quar­ter but up 4% on the same quar­ter last year. This came to 4,100 loans, down 11% quar­ter on quar­ter but up 2% com­pared to a year ago.

“It is very pos­i­tive to see growth among both first time buy­ers and home movers, mak­ing this the strong­est sec­ond quar­ter for home buy­ing ac­tiv­ity in Wales since 2007. Af­ford­abil­ity con­tin­ues to be bet­ter in Wales than the UK over­all, and with at­trac­tive mort­gage rates and a wide range of choice in the mar­ket cur­rently; we ex­pect this level of ac­tiv­ity to con­tinue go­ing for­ward,” said Julie Ann Haines, chair of the UK Fi­nance Wales mort­gage com­mit­tee.

Ac­cord­ing to Toby Whit­tome, Lon­don sales director at Jack­son-Stops & Staff, strong lev­els of lend­ing ac­tiv­ity are al­most cer­tainly em­a­nat­ing from the lower to mid-lev­els of the greater Lon­don re­gional prop­erty mar­ket.

“If stamp duty lev­els weren’t caus­ing so much harm in the mil­lion-plus mar­ket, which is fo­cused in Lon­don, I think we would see this health and flu­id­ity spread to the higher end of the mar­ket too. If Lon­don was fir­ing on all cylin­ders at ev­ery level, just imag­ine how pos­i­tive it would look to the rest of the world,” he pointed out.

Richard Sex­ton, director at e.surv, some parts of the coun­try prove to be more fruit­ful for small de­posit buy­ers while at the other end of the spec­trum, Lon­don is see­ing more de­mand from large de­posit buy­ers, where 41% of all mort­gages granted in the re­gion are to those with a large de­posit.

The ma­jor­ity of Bri­tish peo­ple plan to in­tro­duce more smart tech­nol­ogy into their homes to save time and money and be­come more en­ergy ef­fi­cient, new re­search sug­gests. How­ever, while 73% would like to do so, many do not un­der­stand the ben­e­fits, with one in five think­ing that so­lar pan­els, for ex­am­ple, only gen­er­ate elec­tric­ity when the sun is shin­ing and one in 10 think­ing they don’t work when it is cold.

The re­search from E.ON also found that once com­mon house­hold items are now con­sid­ered ob­so­lete be­cause of new tech­nol­ogy. Some 52% said that CD and DVD stands are no longer needed, 48% have no need for a photo al­bum, 34% said book­shelves are not re­quired and 26% said ca­bles and wires.

While over­all the ma­jor­ity of peo­ple have al­ready taken steps to make their homes smarter, the re­search found that 34% are plan­ning fur­ther tech­nol­ogy up­grades, although 27% have yet to adopt smart tech­nolo­gies in their homes and 21% of home own­ers are un­com­fort­able with us­ing smart tech­nol­ogy.

Those who’ve al­ready im­ple­mented tech­nol­ogy up­grades cited sav­ing money as the top driver with 59% say­ing so, while 55% were mo­ti­vated to be more en­ergy ef­fi­cient and 38% by sav­ing time.

Newspapers in English

Newspapers from Cyprus

© PressReader. All rights reserved.