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Confidence in property remains high for hopeful home buyers

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Thu 17 Nov 2016

Confidence in property remains high for hopeful home buyers

Loan approvals and values reached a nine-year high for September, according to the Council of Mortgage Lenders.

The trade body says home owners borrowed £11.4bn for house purchase, down 7% month-on-month but up 4% year-on-year, and took out 62,900 loans, down 5% on August but up 3% on September 2015.

 

First-time buyers borrowed £4.9billion, down 4% on August but up 14% on September last year. This equated to 31,500 loans, down 1% month-on-month but up 13% year-on-year.

The overall house purchase lending figures are the highest for September since 2007 and the biggest volume for first-time buyers since the same month in 2006.

Paul Smee, director general of the Council of Mortgage Lenders, said: “House purchase activity appears to have steadied. We may not be seeing huge increases in activity on the scale of 2013-14 but there is a consistency in the levels in recent months.

“Mortgage affordability reached an historic low in September, for both first-time buyers and home movers, which partly reflects the re-pricing of mortgages following August’s base rate cut. This should help turn strong appetite for home-ownership into a reality as we approach the closing months of the year.”

Responding to the figures, David Brown, chief executive of Marsh & Parsons, said: “Low interest rates have improved affordability for buyers and helped drive activity for those who can get great deals.

“Therefore, while uncertainty remains about the outcome of Brexit negotiations, confidence in property remains high for hopeful home buyers, investors and sellers."