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First-time buyers in Wales up 28% year-on-year in the fourth quarter of 2013

26 Feb 14

First-time buyers in Wales up 28% year-on-year in the fourth quarter of 2013

First-time buyers continued their upward trend with more having loans advanced to them in the fourth quarter of 2013 than any quarter since 2007, according to new data released by the CML.

First-time buyers

A total of 3,200 loans were advanced to first-time buyers in the fourth quarter of 2013 which was an increase of 14% on the third quarter and up 28% compared to the fourth quarter in 2012.

In value, fourth quarter first-time buyer loans totalled £320m in Wales, up 10% from the third quarter and up by 33% compared to the same period last year. The average value of the loans also increased to just under £97,500 in the fourth quarter compared to £94,500 in the third quarter.

The typical deposit of first-time buyers in Wales remains at 15%, something that has not changed since the first quarter of 2012 and lower than the 20% typical deposit size seen on average throughout the UK.

First-time buyers in 2013

In Wales, the total number of loans advanced to first-time buyers overall in 2013 was 10,600, up 22% compared to 2012. The total value of these loans was £1.1bn which was up 28% compared to 2012.

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

26.02.2014 Wales FTBs graph

Source: CML regulated mortgage survey

Home movers

Growth in lending to home movers was not as strong as lending to first-time buyers although remains positive, 4,000 loans were advanced in Wales, which was an increase of 11% in volume on the third quarter and up 11% compared to the fourth quarter of 2012. The total value of these loans was £500m in the fourth quarter of 2013, up 14% compared to the third quarter and up 16% year-on-year.

Overall in 2013, home movers in Wales were advanced 13,400 loans, which was down 22% compared to 2012. The value of the loans in 2013 was £1.6bn, which was down 34% in value compared to 2012.

Lending for house purchase

Total house purchase lending - covering both first-time buyers and movers - in Wales has shown growth in comparison to the third quarter of 2013 and the same period last year. Overall 7,100 house purchase loans were advanced in Wales in the fourth quarter which was an increase of 11% on the third quarter of 2013 and an increase of 16% compared to the fourth quarter of 2012. This total value of these loans amounted to £830m which was also up by 14% on the third quarter of 2013 and up 24% year-on-year.

Overall in 2013, the total number of loans advanced for house purchase in Wales was 23,900, up 7% compared to 2012. The total value of these loans was £2.7bn, which was up 10% compared to 2012.

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

26.02.2014 Wales house purchase graph

Source: CML regulated mortgage survey

Remortgage lending

Remortgage lending increased in Wales in the fourth quarter with £380m advanced in total, which was down 3% compared to the third quarter of 2013 but up 15% compared to the fourth quarter of 2012. In total, 3,700 remortgage loans were advanced in this period, down 8% compared to the previous quarter but up 6% compared to the fourth quarter of 2012.

Overall in 2013, the total number of loans advanced for remortgage in Wales was 14,600, up 4% compared to 2012. The total value of the remortgage loans was £1.4bn, up 7% compared to 2012.

Chart 3: Remortgaging lending in Wales: Year-on-year % change in Wales compared with the UK

26.02.2014 Wales remortgage graph

Source: CML regulated mortgage survey

Peter Hughes, chairman of CML Cymru, commented:

"It is very positive to see the momentum of first-time buyers in Wales has continued, closing the year strongly. The year-on-year growth in remortgage and home mover lending suggests the improving economic conditions in Wales are leading to increased activity in the market; a good signal for a continued upward trend in 2014."

"It will be interesting to see the effect Help to Buy - Wales will have on the market. There is a potential with the scheme to open the market in Wales to borrowers without large deposits, which might help ensure this momentum we have seen is sustained."

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 first quarter of 2014 will be released on Wednesday 28 May 2014.

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