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Largest number of first time buyers in Wales since 2007

28 Aug 13

Largest number of first time buyers in Wales since 2007

More first-time buyers were advanced loans in the second quarter of 2013 in Wales than in any other single quarter since the end of 2007, data from the CML shows.

This positive growth saw house purchase loans in Wales up a third in the second quarter compared to the first quarter of 2013. 

First-time buyers

A total of 2,700 loans were advanced to first-time buyers in the second quarter of 2013 which was a significant increase on the 2,000 loans in the first quarter and up from 2,100 in the second quarter of 2012.

The average value of the loans also increased to £93,453 in the second quarter compared to £88,355 in the first quarter. This meant that there was a stronger growth in the total value of lending to first-time buyers in Wales which totaled £270m, an increase of 35% on the second quarter last year and 42% higher than the first quarter of 2013.

The typical deposit of first-time buyers in Wales remains at 15%, something that has not changed since the third quarter of 2011 and lower than the 20% typical deposit size seen on average throughout the UK.

Chart 1: Lending to FTBs in Wales, number of loans advanced, and lending to FTBs in Wales as a proportion of the UK total

28.08.2013 Wales FTBs v1

Source: CML regulated mortgage survey

Home movers

Growth in lending to home movers was not as strong as first-time buyers although remains positive, 3,400 loans were advanced in Wales, worth £410m, which was an increase of 31% on the first quarter. However, this was actually a decrease of 3% compared to the second quarter of last year.

Lending for house purchase

Total house purchase lending - covering both first-time buyers and movers - in Wales have shown strong growth in comparison to the first quarter of 2013 and last year. Overall 6,100 house purchase loans were advanced in Wales in the second quarter which was an increase of 33% on the first quarter of 2013 and a 9% increase on quarter two last year. This total value of these loans amounted to £680m which was also up by 11% on the second quarter of 2012. 

Chart 2: House purchase lending in Wales: Year-on-year % change in Wales compared and the UK

28.08.13 Wales house purchase lending graph one

Source: CML regulated mortgage survey

Remortgage

Remortgage lending increased in Wales in the second quarter with £370m advanced in total. This resulted in the first year-on-year increase since the end of 2011 with remortgage lending up by 19% compared to the first quarter of 2013 and up 6% compared to the second quarter of 2012.

Chart 3: Remortgaging lending in Wales: Year-on-year % change in Wales compared and the UK28.05.13 Wales remortgage lending in Wales

Source: CML regulated mortgage survey

Peter Hughes, chairman of CML Cymru, commented:

"The positive growth trends we are seeing in Wales this quarter and the increasing confidence are very encouraging. First-time buyer levels being at their highest since 2007 is hugely welcome and, along with the growth in all other sectors, suggests lenders are very much open for business." 

 

Notes to editors

1. 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.

2. Source: CML Regulated Mortgage Survey

3. 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.

4. Data for the third quarter of 2013 will be released on Tuesday 26 November 2013

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