Surge in first-time buyers outside London

Housing market across Scotland, Wales and Northern Ireland boosted by new homeowners

NEW homeowners are driving the buoyant housing markets in Scotland, Wales and Northern Ireland, by taking advantage of low interest rates.

Growth rates in those areas were twice as high as those in London in the second quarter of 2017, as young would-be owners struggled to pay the larger sums needed to purchase property in the capital.

First-time buyer numbers grew by 29pc in Scotland in the quarter, 26pc in Wales and 15pc in Northern Ireland, compared with only 8pc in London, ac- cording to figures from UK Finance, the new industry group that replaced organisations including the Council of Mortgage Lenders. “Home buying in the capital 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’s head of mortgages. “The housing market in Greater London has some unique characteristics compared to the rest of the UK – 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.”

By contrast, other parts of the UK are experiencing something of a sweet spot, where prices are affordable, loans available and buyers confident. “House purchase lending in Northern Ireland reached its highest second-quarter level since 2007,” said Derek Wilson, chairman of the UK Finance Northern Ireland mortgage committee. “Firsttime buyers continue to drive that growth, out-borrowing home movers since 2010.”

Growth in the property market overall picked up in the quarter, aided by demand from first-time buyers. The number of loans in Northern Ireland grew by 15pc on the year and on the quarter to 3,800 – most of which were first-timers. In total

£420m in the quarter.

Wales’s growth rate hit 23pc on the quarter and 14pc on the year with 8,100 mortgages given out, just over half of which went to purchasers making their debut in the market. By cash value, those loans came to £1.1bn. Scotland’s buyers borrowed £2.5bn, with the number of loans up by 30pc on the quarter and 15pc on the year to 18,800.

Buyers in London took 18,000 loans, up 6pc on the quarter and up 8pc on the year. they borrowed