Number of first-time home buyers up 2.8% in year

THE number of people getting on the property ladder was higher in October than a year earlier, but re-mortgaging levels fell sharply, figures from a trade association show.

Some 32,260 new first-time buyer mortgages completed in October, 2.8% more than in the same month in 2018, according to UK Finance. There were also signs of increased activity among existing home owners moving properties.

There were 33,370 home-mover mortgages completed in October this year, 4.2% more than 12 months ago.

Meanwhile, there were 18,910 new re-mortgages where extra money was borrowed, down by around a fifth (20.8%) on a year earlier.

For these re-mortgages the average additional amount borrowed during the month was £51,000.

There were 20,660 new pound-for-pound re-mortgages with no additional borrowing, 20% fewer than in October 2018.

UK Finance said the fall in re-mortgage activity followed a strong period of growth in September.

Last month it said that there had been 2,870 new homeowner re-mortgages in Northern Ireland over the third quarter of 2019, 21.6% more than in the same quarter in 2018.

Looking at lending to landlords, UK Finance said 6,600 new buy-to-let home purchase mortgages were completed in October 2019, 1.5% fewer than a year earlier.

There were 16,200 re-mortgages in the buy-to-let sector, 2.4% down on the same month in 2018.

The figures were released as a separate report from NAEA

Propertymark said the number of house hunters registered per estate agent branch decreased in November from 341 to 332. This was the lowest figure seen since July.

The number of properties available per member branch remained the same in November, standing at 39.

Mark Hayward, chief executive of NAEA Propertymark, said that greater political certainty, following last week’s general election, could trigger more housing market activity.

“The housing market now has reassurance from the Government, which will in turn inject some confidence in the market for both buyers and sellers,” Mr Hayward added.

“Now the political impasse is resolved and it’s clear how and when we’ll be leaving the EU, we hope there will be a degree of certainty which may trigger a flurry of activity.”