15 Aug

Lending to first-time buyers up

Lending to first-time buyers up

New figures from the Council of Mortgage Lenders (CML) show an increase in the number of first-time buyers coming to the property market in June.

Figures show homeowners borrowed a total of £12.3 billion – up 29 per cent on May 2016 and 12 per cent higher than in June 2015.

There appears to be increased activity by those stepping on to the property ladder for the first time, with first-time buyers borrowing £5.5 billion in June, 28 per cent higher than in the previous month and 25 per cent higher than in the same month in 2015.

Paul Smee, CML’s director general, explained buy-to-let activity remained subdued, but explained this was likely to be still the impact of recent stamp duty changes.

He added there were a lot of positive underlying trends in the latest data and the outlook looked positive.

“These figures reveal growth in house purchase activity and in particular for first- time buyers. As ever, there is uncertainty and it will take more time and patience to understand how the market will evolve in the current environment as these figures predominantly cover activity in the run up to the referendum,” said Mr Smee.

He added: “We still believe that the mortgage market is well capitalised, resilient and open for business, and will remain so for the foreseeable future. First time buyers are continuing to drive house purchase lending, outperforming home movers for the third month running. More loans were advanced to them in June than at any time since August 2007.”ADNFCR-1222-ID-801823574-ADNFCR

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