London home buying rises 17% year on year in Q2
There are positive signs of an improved London housing market as new data has revealed a 17% year on year rise in the amount of borrowing for house purchase in Quarter 2 of 2017.
According to new figures from UK Finance, borrowing in the capital bounced back from a slow start to the year, with a total of £6.1 billion borrowed in the second Quarter for home buying.
This number relates to 18,000 loans, with no less than 10,600 of these loans, totalling £3.1 billion, coming from first-time buyers. The amount of lending to first-time buyers increased by 5% on the first Quarter and was 8% higher year on year.
Paul Smee, UK Finance head of mortgages, said:
“Home buying in the capital bounced back from the traditionally subdued beginning of the year, with both first-time buyer and home mover lending showing growth both on the first quarter of 2017 and on the same period a year ago.
“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 to manage for the London market if positive activity is to continue going forward.”
Jorden Abbs, head of operations at Commercial Trust, stated:
“This latest report is an affirmation of the demand for housing in London and despite the higher than average house prices in the capital, underlines the enduring appeal of property here.
“As such, London remains an important hub for industry and employment and offers a wide choice of lifestyle options for home buyers and tenants alike.
“Low interest rates continue to appeal to many would-be buyers and the same is true for the capital’s buy-to-let market – the capital has much to offer for any landlord looking to take advantage of the present opportunity.
“Whether a landlord is looking to remortgage or purchase, London has much appeal and the number of first-time buyers in Quarter 2 does not reflect the true figure of those in rentals, who wish to also take that first step on the ownership ladder, but through issues of affordability are having to remain patient.
“Rental demands in the capital remain high and consequently London’s potential for buy-to-let landlords is undiminished. Commercial Trust works with a number of lenders in London and can help to discuss many options with would-be investors.”
This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.