London house purchase and remortgage lending up in Q1

May 26, 2016

Press release yesterday from the Council of Mortgage Lenders (CML) headlined London house purchase and remortgage lending up year-on-year in first quarter (Q1) of 2016.

Home buyers in London borrowed £7.1bn for house purchase in the first quarter of 2016, up 6% quarter-on-quarter and 41% on a year ago. They took out 21,400 loans, down 2% on the previous quarter but up 20% compared to the first quarter 2015.

First-time buyers borrowed £2.9bn, down 7% on the fourth quarter 2015 but up 19% on the first quarter last year. This equated 10,700 loans, down 10% quarter-on-quarter but up 3% year-on-year.

Home movers borrowed £4.2bn, up 18% quarter-on-quarter and 63% compared to a year ago. This equated to 10,600 loans, up 8% quarter-on-quarter and 43% on quarter one 2015.

Remortgage activity totalled £4bn, up 4% on the fourth quarter 2015 and 36% compared to a year ago. This came to 13,500 loans, up 2% quarter-on-quarter and 21% compared to a year ago.

Paul Smee, director general of the CML, commented: “The usual seasonal dip in lending in the first quarter of the year didn’t seem to impact London as strongly as the UK overall, mainly due to a strong uptick in home mover activity. Remortgage lending also performed well resulting in the highest first quarter remortgage levels in the capital since 2009.

“The housing market in Greater London has some unique characteristics compared to the rest of the UK – more first-time buyers, but lower overall levels of home-ownership. Affordability and the supply of housing remain critical factors for the London market, and we will be pleased to work with the new mayor and his deputy on how to deliver appropriate strategy over his term of office”.

To read the CML press release in full click here

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

Slight rise in house prices as market maintains strength

Halifax House Price Index • House prices increased by +0.3% in April vs -0.5% in March • Average property price now £297,781 compared to £296,899 in previous month • Annual rate of growth at +3.2% up from +2.9% in March • House prices remarkably stable over last six months, down by just £48 • Northern…
Read More →
bank of england interest rate
Breaking News

Industry Reacts to Bank Rate Cut

Nathan Emerson, CEO of Propertymark: “Today’s news will no doubt be extremely welcome for many, especially given current economic uncertainties. International bodies have recently stated they expect interest rates to fall in the UK as the year progresses. Overall, we hope to see interest rates further continue their downward trajectory over the course of 2025. …
Read More →
Rightmove logo
Breaking News

Rightmove reaction to Bank Rate cut

Matt Smith, Rightmove’s mortgage expert says: “The much-anticipated second rate cut of the year has arrived, and with some lenders having taken their time to pass on the benefits of the expected Bank Rate cut, I think we may now see further reductions in the coming days and weeks. A fresh round of mortgage rate…
Read More →
Breaking News

Zoopla crowns Glenrothes the most popular affordable town for families as one in three fear being priced out of their ideal area

New Zoopla research pinpoints Glenrothes in Scotland, with an average three-bedroom home value of £136,900, as the most attractive option for families seeking affordability All of the towns in the top ten are located in Scotland and Wales, apart from Dartford and Swanley in the South East Three-bed homes in the most popular affordable towns…
Read More →
Breaking News

UK government admits almost no evidence nature protections block development

Environmental lawyer says it’s deeply frustrating that the Government is pushing major changes to conservation law without supporting data or research Whitehall analysis provides no data or research to support the government argument that environmental legislation holds up building. Ministers say the new bill will speed up housing developments and large infrastructure projects by allowing…
Read More →
Estate Agent Talk

Comment: US economic uncertainty to spark boom in UK real estate investing

As Trump’s economic agenda resurfaces rooted in protectionism, tariffs, and “America First” rhetoric, markets are experiencing renewed and significant volatility. While the goal may be to repatriate jobs and capital, the reality could mirror his first term: supply chain disruption, retaliatory tariffs, inflation, and ultimately, a loss of investor confidence. The resulting uncertainty is likely…
Read More →