House pur­chase lend­ing up five per cent in Novem­ber

The Oban Times - - Property -

On an un­ad­justed ba­sis, in Novem­ber:

Home- own­ers bor­rowed £11bn for house pur­chases, up five per cent month- on­month and two per cent year- on-year. They took out 60,800 loans, up five per cent on Oc­to­ber and up 0.2 per cent on Novem­ber 2015. First-time buy­ers bor­rowed £4.7bn, up four per cent on Oc­to­ber and nine per cent on Novem­ber last year. This equated to 30,100 loans, up five per cent month- on­month and eight per cent year- on-year. Home movers bor­rowed £6.3bn, up seven per cent on a month ago but down five per cent com­pared to a year ago. This rep­re­sented 30,700 loans, up six per cent mon­thon- month but down six per cent on Novem­ber 2015. Re­mort­gage ac­tiv­ity to­talled £5.8bn, down five per cent on Oc­to­ber but up 14 per cent com­pared to a year ago. This came to 34,700 loans, un­changed month- on- month but up 13 per cent com­pared to a year ago. Land­lords bor­rowed £3.2bn, up 10 per cent month- on­month but down nine per cent year- on-year. This came to 21,000 loans in to­tal, up 13 per cent com­pared to Oc­to­ber but down 10 per cent com­pared to Novem­ber 2015. The Coun­cil for Mort­gage Lenders (CML) now pub­lishes sea­son­ally ad­justed monthly data, along­side the nor­mal un­ad­justed data. This makes it eas­ier to spot un­der­ly­ing trends. Paul Smee, di­rec­tor gen­eral of the CML, com­mented: ‘ Novem­ber lend­ing re­flected sta­ble mar­ket con­di­tions. Over­all, 2016 did not match re­cent years in terms of house pur­chase lend­ing growth, but lend­ing re­mained re­silient through reg­u­la­tory and po­lit­i­cal change and as­pi­ra­tions for home- own­er­ship re­main strong in the UK. Our fore­casts for 2017 may be less bullish than a year ago, as eco­nomic un­cer­tainty weighs on the mar­ket, but we still pre­dict 1.2 m trans­ac­tions and a slight in­crease in gross lend­ing to £248bn. ‘ Buy- to- let lend­ing, driven by re­mort­gage ac­tiv­ity, saw its strong­est monthly lend­ing level since the stamp duty changes on sec­ond prop­er­ties in­tro­duced last April. De­spite this, we ex­pect buy-to- let lend­ing lev­els in both 2016 and 2017 to prove lower than their 2015 re­cent peak as fur­ther tax changes take ef­fect.’

Home- owner house pur­chase lend­ing

The pro­por­tion of house­hold in­come used to ser­vice cap­i­tal and in­ter­est rates reached an­other his­toric low this month for both first-time buy­ers and home movers at 17.5 per cent. Af­ford­abil­ity met­rics for first- time buy­ers saw the typ­i­cal loan size in­crease from £133,400 in Oc­to­ber to £134,200 in Novem­ber. The av­er­age house­hold in­come re­mained un­changed month- on­month at £40,000. This meant the in­come mul­ti­ple went from 3.56 to 3.54. The av­er­age amount bor­rowed by home movers in the UK de­creased to £171,000 in Novem­ber from £172,000 in Oc­to­ber, while the av­er­age home mover house­hold in­come de­creased slightly to £54,800 from £54,900. The in­come mul­ti­ple for the av­er­age home mover went from 3.26 to 3.27. On a sea­son­ally ad­justed ba­sis, in con­trast to the non-sea­son­ally ad­justed fig­ures, the num­ber of loans to first- time buy­ers de­clined month- on- month, but still in­creased year- on-year. The vol­ume of home mover loans in Novem­ber de­clined both month- on- month and year- onyear on a sea­son­ally ad­justed ba­sis. Buy-to- let and re­mort­gage ac­tiv­ity re­mained rel­a­tively sim­i­lar on a sea­son­ally ad­justed and non-sea­son­ally ad­justed ba­sis.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.