House purchase lending up across UK regions: CML

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House purchase lending up across UK regions: CML

House purchase lending was up across all UK during the second quarter of this year, according to the Council of Mortgage Lenders, with Scotland leading the way, up 39 per cent with 16,700 house purchase loans.

The CML data, published today (26 August), showed that the value of Scottish house purchase loans was also up 27.5 per cent to £2.1bn when compared to the first quarter of this year. Remortgaging was up by 11.9 per cent to 6,600 loans while the value of these loans increased by 15.2 per cent to £760m.

The number of loans to first-time buyers in Scotland rose by a staggering 50.9 per cent to 8,000 in the second quarter of this year, with the value increasing by 51.7 per cent to £880m.

Wales also saw house purchase activity increase by 29 per cent in the second quarter, with 6,600 loans for house purchases amounting to £810m, which also increased by around 28 per cent.

The number of loans for remortgages increased by 9 per cent to 3,500 loans totalling £370m, which was an 8.8 per cent rise on the previous quarter.

There were 3,100 loans given to first-time buyers in the second quarter, a 29.1 per cent increase on the previous three months, amounting to £330m, which was also up by 26 per cent.

Northern Ireland house purchase lending was up by 11 per cent, amounting to 3,000 loans which totalled £300m which was a 15 per cent increase on the previous quarter. There were 1,600 remortgage loans in this period, amounting to £160m - both of which were up by 6.7 per cent.

Lending to first-time buyers also increased, up by 6.3 per cent to 1,700 loans. This totalled £150m, which was a 15.4 per cent increase on the previous three months.

Finally, in Greater London, there were 18,000 loans for house purchase, up 9.3 per cent, amounting to £5.5bn, which was a 12.7 per cent increase on the first quarter of this year.

There were 11,600 remortgage loans, up 7.4 per cent, amounting to £3.2bn, which was up 13.3 per cent.

There were 8,100 first-time buyers loans given to those who live in Greater London, a 12.5 per cent increase, amounting to £2.8bn which was up by 14.1 per cent.

Stephen Smith, director at Legal and General Mortgage Club and Housing, commented that CML’s regional lending data shows the “imbalance” between supply and demand is not consistent across the country.

House purchase loans in London in particular are were 10 per cent down on the same period last year, “where high asking prices have resulted in less activity in the market as fewer people are able to afford to make the property moves they want”.

peter.walker@ft.com

Additional reporting by Donia O’Loughlin