Home buyer ac­tiv­ity in April down on March but up on a year ago

The Oban Times - - Prop­erty -

On a non-sea­son­ally ad­justed ba­sis, lend­ing in April: Home buy­ers bor­rowed £9.6bn, down 14 per cent on March but up 19 per cent on April 2016. This came to 51,200 loans, down 16 per cent on March but up nine per cent on April 2016. Within this, first-time buy­ers bor­rowed £4.1bn, down 16 per cent on March but up eight per cent on April 2016. They took out 25,400 loans, down 18 per cent month-on-month but up two per cent year-on-year.

Mean­while, home movers bor­rowed £5.5bn, down 11 per cent on March but up 28 per cent year-on-year. This equated to 25,700 loans, down 15 per cent mon­thon-month but up 17 per cent com­pared to April 2016.

Home-owner re­mort­gage ac­tiv­ity was down 16 per cent by value and 18 per cent by vol­ume on March. Com­pared to a year ago, re­mort­gage lend­ing was down 15 per cent by value and 16 per cent by vol­ume.

Gross buy-to-let saw month-on-month de­creases, down 17 per cent by value and 16 per cent by vol­ume. Com­pared to April 2016, the num­ber of loans in­creased one per cent and the amount bor­rowed re­mained un­changed.

Paul Smee, di­rec­tor gen­eral of the CML, com­mented: ‘April com­par­isons are dis­torted by the weak­ness last year fol­low­ing the stamp duty changes, and the nor­mal sea­sonal lend­ing surge in March.

‘But the sea­son­ally-ad­justed pic­ture shows lend­ing rel­a­tively un­changed month-on-month across all lend­ing seg­ments.

‘Head­ing into the sum­mer months, we ex­pect the mar­ket to re­main slightly lop­sided. Buy-to-let and home movers may well re­main sub­dued, as they have been for the past six months. But both first-time buyer and re­mort­gage lend­ing should main­tain mo­men­tum on the coat­tails of the at­trac­tive deals avail­able.’

On a sea­son­ally ad­justed pe­riod, first­time buy­ers and home movers went up by value and re­mained rel­a­tively un­changed by vol­ume com­pared to March. Buy-to-let and re­mort­gage ac­tiv­ity also re­mained rel­a­tively un­changed in April from March. The pro­por­tion of house­hold in­come used to ser­vice cap­i­tal and in­ter­est rates con­tin­ued to be near his­toric lows in April for both first-time buy­ers and home movers at 17.3 per cent and 17.5 per cent re­spec­tively.

Af­ford­abil­ity met­rics for first-time buy­ers saw the typ­i­cal loan size in­crease from £133,500 in March to £136,500 in April. The av­er­age house­hold in­come in­creased to £40,700 from £40,000. This meant the in­come mul­ti­ple went from 3.53 to 3.57. The av­er­age amount bor­rowed by home movers in the UK in­creased to £176,500 from £172,400 the pre­vi­ous month, while the av­er­age home mover house­hold in­come in­creased month-on-month from £54,100 to £55,200. The in­come mul­ti­ple for the av­er­age home mover went up to 3.35 from 3.34.

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