Total number of loans advanced to first-time buyers in March increased 20 per cent on the previous month to 23,000, though this was still down 5 per cent down compared to March 2014, according to the latest data from the Council of Mortgage Lenders.
Gross mortgage lending reached £16.1bn in March, representing an 18 per cent increase from February’s total and 5 per cent higher than lending in March 2014.
Overall, home movers took out 25,200 loans, an increase of 14 per cent compared to February but down 3 per cent year-on-year. Remortgage lending was also up month-on-month with 26,600 loans advanced, an increase of 19 per cent on February and 6 per cent up on last March.
Buy-to-let continues to growth, with the latest figures showing there were 18,200 buy-to-let loans in March, up 12 per cent on the previous month and up 21 per cent compared to March 2014. The loans were worth £2.7bn in March, an increase of 13 per cent compared to February and up 35 per cent from March 2014.
In terms of first quarter statistics first-time buyers took out 61,300 loans, down 24 per cent on the fourth quarter and 11 per cent down on the first quarter of 2014. Home movers took out 70,400 loans, a similar decrease of 25 per cent compared to the fourth quarter and also down 11 per cent year-on-year.
Remortgage lending however, increased quarter-on-quarter with 75,400 loans advanced - up 3 per cent on the fourth quarter 2014, but down 5 per cent on the same quarter last year.
There were 52,300 buy-to-let loans advanced in the first quarter of 2015 - down 3 per cent on the previous quarter, but up 15 per cent on the same period in 2014.
Paul Smee, CML director general, commented that after a slow start to activity in the first couple of months, the market started to get out of the dip in March, a trend he suspects will continue as the year goes on.
“We will have to wait and see how the housing market reacts to the general election result and the reduction in the risk of a prolonged period of market uncertainty which could well have been damaging to businesses and the housing market.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, added: “Buy-to-let lending remains strong, proving its enduring popularity. Investors like the tangible nature of property compared with stocks and shares, and the rising demand for rental property from those unable to buy means there is a ready supply of tenants.
“The relaxation of pension rules last month is likely to provide a further boost for the sector. A combination of cheap mortgage rates, easing criteria and poor savings rates are convincing many that investment property is a sensible home for their money.”
peter.walker@ft.com
