From 1st July the Council of Mortgage Lenders is integrated into a new trade association, UK Finance. For the time being, all UKF mortgage information will continue to be published on this website, and UKF member-only mortgage information will only be available here.

UK Finance represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation takes on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association. Please go to www.ukfinance.org.uk for wider content and updates from UK Finance.

  1. Home
  2. News
  3. Press releases
  4. Home buyers in London up 6% in second quarter

Home buyers in London up 6% in second quarter

Published: 23 August 2017

In the second quarter in London:

  • Home buyers borrowed £6.1bn for house purchase, up 11% quarter-on-quarter and 17% year-on-year. They took out 18,000 loans, up 6% compared to the previous quarter and 8% on the second quarter 2016.
  • First-time buyers borrowed £3.1bn, up 10% on the first quarter and 8% on the second quarter last year. This equated to 10,600 loans, up 5% quarter-on-quarter and 3% year-on-year.
  • Home movers borrowed £3.0bn, up 11% quarter-on-quarter and 28% compared to a year ago. This equated to 7,400 loans, up 7% quarter-on-quarter and 18% compared to the same quarter in 2016.
  • Remortgage activity totalled £3.9bn, down 10% on the first quarter and 4% compared to the same quarter last year. This came to 12,800 loans, down 12% quarter-on-quarter and 5% compared to a year ago.

Paul Smee, UK Finance Head of Mortgages, commented:

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.

Affordability in London

First-time buyers typically borrowed £268,100 (£137,700 in the UK overall), up from £254,800. The average household income was £66,900 (£40,800 in the UK overall), up from £64,300 from the previous quarter. The typical income multiple in London of 4.02 (up from 4.00 the previous quarter) also compared to the UK average of 3.58.

Affordability metrics for home movers saw the typical amount borrowed this quarter was £353,500 (£178,200 in the UK overall), up from £345,400 the previous quarter. The average household income of a home mover was £91,300 (£55,100 in the UK overall), up from £89,400. This meant the typical home mover income multiple in London was 4.01, up from 3.96 the previous quarter and higher than the UK average of 3.37.

Chart 1: Number of loans to home-owners, 2007-2017

20170823 London Q2 2017 MLT chart 1

Source: CML Regulated Mortgage Survey

Download data

Table 1: Number of loans for house purchase and remortgage in the second quarter of 2017

 

House purchase

Remortgage

 

FTBs

Movers

Home owners

Q2 2016

10,300 6,300 13,500

Q1 2017

10,100 6,900 14,600

Q2 2017

10,600 7,400 12,800

Change compared to Q1 2017

+5.0% +7.2% -12.3%

Change compared to Q2 2016

+2.9% +17.5% -5.2%

Table 2: Value of loans for house purchase and remortgage in the second quarter of 2016

 

House purchase (£m)

Remortgage (£m)

  FTBs Movers Home owners

Q2 2016

2,860 2,360 4,070

Q1 2017

2,800 2,720 4,310

Q2 2017

3,090 3,020 3,890

Change compared to Q1 2017

+10.4% +11.0% -9.7%

Change compared to Q2 2016

+8.0% +28.0% -4.4%

20170823 London Q2 first-time buyer affordability infographic

20170823 London Q2 home mover affordability infographic

Notes to editors

1. UK Finance is a new trade association which was formed on 1 July 2017 to represent the finance and banking industry operating in the UK. It represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation brings together activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.

2. Mortgage lending figures for Q3 will be released on Wednesday 22 November 2017.

Contact us

Gareth Hill

020 7438 8922

Sue Anderson

020 7438 8924

Bernard Clarke

020 7438 8923