Mixed picture in De­cem­ber but first-time buyer lend­ing healthy, says CML

The Oban Times - - PROPERTY -

Lend­ing in De­cem­ber:

Home- owner house pur­chase lend­ing to­talled £11.6bn in De­cem­ber, up five per cent on Novem­ber and three per cent on De­cem­ber 2015. This came to 63,600 loans, up five per cent on Novem­ber and 0.2 per cent on De­cem­ber 2015.

First-time buy­ers bor­rowed £5.1bn for home- owner house pur­chase, up nine per cent on Novem­ber and 13 per cent on De­cem­ber 2015. This to­talled 32,000 loans, up seven per cent month- on- month and eight per cent year- on-year.

Home movers bor­rowed £6.5bn, up three per cent on Novem­ber but down three per cent year- onyear. This to­talled 31,600 loans, up three per cent month- on­month but down seven per cent com­pared to De­cem­ber 2015.

Home- owner re­mort­gage ac­tiv­ity was down 21 per cent by vol­ume and by value com­pared to Novem­ber. Com­pared to De­cem­ber 2015, re­mort­gage lend­ing was up seven per cent by vol­ume and by value.

Gross buy-to- let saw mon­thon- month de­creases, down 15 per cent by vol­ume and seven per cent by value. Com­pared to De­cem­ber 2015, the num­ber of loans de­creased 21 per cent and the value of these loans de­creased 18 per cent.

Lend­ing in the fourth quar­ter of 2016:

Home- owner house pur­chase lend­ing fell in the fourth quar­ter to £33.1bn, down three per cent on the third quar­ter and two per cent on the same quar­ter 2015. This to­talled 182,000 loans, down two per cent on the pre­vi­ous quar­ter and four per cent on the fi­nal pe­riod of 2015.

First-time buy­ers took out 90,800 loans to­talling £14.3bn to pur­chase homes. This was down one per cent by vol­ume and value on the third quar­ter, but up four per cent by vol­ume and seven per cent by value year- on-year.

Home movers took out 91,300 loans, down four per cent quar­teron- quar­ter and 11 per cent com­pared to the fourth quar­ter 2015. This came to £18.7bn, down six per cent on quar­ter three and nine per cent year- on-year.

Home- owner re­mort­gage ac­tiv­ity came to £16.6bn, down five per cent on the pre­vi­ous quar­ter but up 10 per cent on the fourth quar­ter 2015. The num­ber of re­mort­gage loans came to 97,500, down three per cent on the third quar­ter but up nine per cent on the same quar­ter in 2015.

Gross buy-to- let lend­ing de­creased to £6bn, down two per cent on the pre­vi­ous quar­ter and three per cent on the same quar­ter in 2015. This to­talled 57,400 loans, up two per cent quar­ter- on- quar­ter but down 20 per cent year- on-year.

Lend­ing in 2016:

Home buy­ers bor­rowed £127.7bn in 2016, up seven per cent on 2015. This came to 698,900 loans, up three per cent on 2015.

First-time buy­ers bor­rowed £53.2bn for home- owner house pur­chase in 2016, up 13 per cent on 2015. This to­talled 338,900 loans, up eight per cent from the pre­vi­ous year. First-time buy­ers bor­rowed more in 2016 than any other year since our records be­gan in 1974.

Home movers took out 360,300 loans, down two per cent on 2015, but the amount bor­rowed to­talled £74.3bn which was up three per cent on 2015.

Home- owner re­mort­gage ac­tiv­ity was up 14 per cent by vol­ume and 20 per cent by value com­pared to 2015. The num­ber of re­mort­gage loans was at its high­est since 2009.

Gross buy-to- let also saw yearon-year in­creases, up three per cent by vol­ume and seven per cent by value, with re­mort­gage busi­ness ac­count­ing for nearly two thirds of the to­tal.

Home- owner house pur­chase lend­ing in De­cem­ber

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 17.4 per cent and 17.5 per cent re­spec­tively.

Af­ford­abil­ity met­rics for first­time buy­ers saw the typ­i­cal loan size in­crease from £134,100 in Novem­ber to £136,000 in De­cem­ber. The av­er­age house­hold in­come in­creased to £40,400 from £40,100. This meant the in­come mul­ti­ple went from 3.54 to 3.57.

The av­er­age amount bor­rowed by home movers in the UK in­creased to £175,000 in De­cem­ber from £170,900 in Novem­ber, while the av­er­age home mover house­hold in­come in­creased slightly to £55,000 from £54,800. The in­come mul­ti­ple for the av­er­age home mover went from 3.27 to 3.32.

On a sea­son­ally ad­justed ba­sis, re­mort­gage and buy-to- let ac­tiv­ity dif­fered markedly from the un­ad­justed fig­ures. While re­mort­gage lend­ing de­creased 21 per cent in Novem­ber on an un­ad­justed ba­sis, on a sea­son­ally ad­justed ba­sis it was a de­cline of only two per cent. Buy-to- let lend­ing was un­changed on a sea­son­ally ad­justed ba­sis in De­cem­ber com­pared to the pre­vi­ous month and De­cem­ber 2015, de­spite the non-sea­son­ally ad­justed lev­els show­ing a de­cline.

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