Loans for house purchase at a near 2 year low in January according to CML
New data for January released yesterday by the Council of Mortgage Lenders (CML) headlined ‘Home buying activity declines in January’.
In January, home buyers borrowed £8.4bn, first-time buyers borrowed £3.6bn for home-owner house purchase, home movers borrowed £4.9bn.
In the report CML stated: The number of loans advanced for house purchase in January was at its lowest monthly level since February 2015 – a near two year low.
Paul Smee, director general of the CML, commented: “January gives the impression of a flattish market overall, albeit one with a resurgent remortgage sector. We expect a seasonal dip in activity in the winter months and this appears to be the case in January. However, the lull in moving activity appears stubbornly persistent, and we have commissioned research on the reasons why the number of transactions seems in secular decline.
“Buy-to-let house purchase activity continues to be weak, despite strong buy-to-let remortgage levels. This will likely remain so going forward as lenders tighten affordability criteria ahead of the PRA mandated stress tests, and the introduction of tax changes in April”.
Read the CML news release with data for January in full click here.
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