ResidentialMar 21 2017

North leads way as mortgage sales jump by a quarter

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North leads way as mortgage sales jump by a quarter

Mortgage sales jumped by nearly a quarter in February, with the biggest increases witnessed in the north of England.

Residential sales stood at £11.8bn and buy-to-let sales at £2.3bn last month, according to Equifax Touchstone's analysis of the intermediary marketplace.

The north and Yorkshire led the way with a 27.9 per cent increase on January’s figure, while Scotland and the Midlands notched up rises of 26.8 per cent and 25.4 per cent respectively. 

London took fourth place with an increase of 24.2 per cent, followed closely by the north west’s 22.1 per cent increase.

But the north east bucked the regional trend with the lowest growth in the whole of the UK, seeing an increase of just 16.2 per cent on January’s figure.

The average value of a residential mortgage in February was £193,078 – up from £191,757 in 2016.

Regional areaTotal mortgage sales growth
North and Yorkshire27.90%
Scotland26.80%
Midlands          25.40%
London24.20%
North West22.10%
South East22.00%
Home Counties21.60%
Northern Ireland21.20%
Wales20.90%
South Coast19.90%
South West19.90%
North East16.20%
 

John Driscoll, director at Equifax Touchstone, said: “Following a volatile end to 2016 the mortgage market saw a vast increase in sales last month in every region across the UK. 

“As the UK moves towards triggering Article 50 we will watch with great anticipation to see how the market responds and whether there will be a noticeable impact on mortgage sales.”

Ian Dawson, managing director at North Yorkshire-based Yorkshire Life Financial Services, said a number of factors could lie behind the region’s impressive growth.

“If prices are a lot lower relative to London, that will make it much more attractive to people buying. For the price of a £500,000 property in London you could probably buy five decent properties in a lot of northern towns.

“A lot of people are probably coming to London and the south east and thinking they are not getting much for their money and maybe shifting up north.

“I have got a theory that a lot more people work from home these days and spend a few nights in London a week, and rather than buying a place it is easier for them to book a Premier Inn for a few nights. A lot more people have that flexibility, and it is only two hours on the train from York to London.

“We are flat out with business and have been for a while. We’re extremely busy, and hopefully it will continue.”

simon.allin@ft.com