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Welsh borrowers have higher aspirations for home-ownership than Great Britain overall

28 May 13

Welsh borrowers have higher aspirations for home-ownership than Great Britain overall

More adults in Wales aspire to be home-owners in the next 10 years than in Great Britain overall, according to findings released today by the Council of Mortgage Lenders based on a survey undertaken by YouGov1.

84% of adults in Wales wish to be home-owners in the next 10 years according to research by YouGov, compared to 79% in Great Britain.

Chart 1: Home-ownership preferences in 10 years’ time in Wales and in GB, by age group, %

Wales you gov

Source: CML calculations based on YouGov survey

In the shorter term, 47% of adults surveyed in Wales indicated they would like to buy a home (either their first or subsequent home) in the next 2-3 years.

Separate data released by the CML in Wales showed an increase in lending to first-time buyers in the first quarter, while lending to home movers and those remortgaging eased.

First-time buyers

A total of 2,000 loans were advanced to first-time buyers in the first quarter, a 5% increase on the first quarter of 2012, but reflecting the normal seasonal factors, down by 20% on the last three months of last year.

By value, lending to first-time buyers increased by 6% (£190 million) compared to the same period last year.

First-time buyers accounted for 44% of all house purchase loans in Wales, up from 41% in the fourth quarter of last year, and 39% in the first quarter of 2012.

Other indicators also suggested more favourable affordability for first-time buyers in Wales. First-time buyers borrowed an average of 3.07 times their income and spent 18.3% of their income in initial mortgage payments in the first quarter, compared to a loan-to-income ratio of 3.23 in the UK and payments consuming 19.5% of a borrowers income.

The loan-to-value ratio in Wales for first-time buyers remained at 85% in the first quarter, higher than the 80% LTV seen in the UK overall.

Chart 2: Lending to FTBs in Wales, number of loans advanced and average LTV ratio

28.05.13 Wales lending to FTBs in Wales

Source: CML regulated mortgage survey

Home movers

Lending to home movers fell in the first quarter with the 2,600 loans advanced (worth £310 million) marking a 13% fall compared to the first quarter of last year and a 28% decrease on the fourth quarter of 2012.

House purchase lending

The fall in lending to home-movers and only a small rise in the number of first-time buyers, led to a fall in house purchase lending in the first quarter compared to the first quarter last year. In total, 4,500 house purchase loans (worth £490 million) were advanced in Wales in the first quarter, a 8% fall compared to the first quarter of 2012, and down by 26% on the last quarter of last year.

Chart 3: House Purchase lending in Wales, number of loans advances, and house purchase lending in Wales as a proportion of the UK total


28.05.13 Wales house purchase lending in Wales

Source: CML regulated mortgage survey

Remortgage lending

As in the UK, remortgage lending remained subdued in the first quarter in Wales. A total of £300 million was advanced to those borrowers looking to remortgage in the first quarter, a 19% fall compared to the £370 million in the first quarter of 2012, but on par with remortgage lending in the UK overall which also fell by 19% compared to the same period in 2012.

Peter Hughes, chair of CML Cymru commented:

"The desire to move into home-ownership in Wales is strong but there are still a number of barriers in the housing market stopping people from buying or moving, which is why we are working with key stakeholders on initiatives aimed at boosting the housing market in Wales."

Notes to editors

1. These findings are CML’s calculations based on a poll conducted by YouGov plc with a total sample size of 8183 GB adults, 367  of who lived in Wales.  Fieldwork was undertaken between March 13 and 15 when 4,045 GB adults were surve4ys, and March 25 to 27 when a further 4,138 were questioned.

2. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 95% of all residential mortgage lending in the UK. There are 11.3 million mortgages in the UK, with loans worth over £1.2 trillion.

3. Source: CML Regulated Mortgage Survey

4. The Council of Mortgage Lenders does not publish statistics for mortgage approvals. The data in our monthly Regulated Mortgage Survey and gross lending press releases relate to mortgage advances only. A mortgage approval is the firm offer to a customer of a specific amount of credit secured against a particular property. A mortgage advance is the total amount of loan actually provided to the buyer, by the lender. Please see the mortgage statistics timeline on our website for further information.

5. Data for the second quarter of 2013 will now be released on the revised date - Wednesday 28 August 2013..

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