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  4. Home buyers in London up 12% in the third quarter

Home buyers in London up 12% in the third quarter

Published: 23 November 2016

In the third quarter:

  • Home buyers in London took out 19,200 loans, worth £6.2bn, a 12% rise compared to the second quarter but down 16% compared to the same quarter in 2015. The value of these loans was up 15% compared to the previous quarter but down 14% compared to Q3 2015.
  • First-time buyers borrowed £3.1bn, up 7% on the second quarter but down 5% compared to the third quarter last year. This equated to 11,300 loans, up 7% quarter-on-quarter but down 9% year-on-year. 
  • Home movers borrowed £3.1bn, up 25% on quarter two this year but 22% compared to a year ago. This equated to 7,900 loans, up 20% quarter-on-quarter but down 25% on quarter three 2015.
  • Remortgage activity totalled £4.4bn, up 5% on the second quarter and 24% compared to the same quarter a year ago. This came to 14,500 loans, up 3% quarter-on-quarter and 15% compared to the third quarter 2015.

Paul Smee, director general of the CML, commented:

There have been quarter-on-quarter increases in the number of loans for house purchase and remortgage but the number of first-time buyers and home movers has decreased when compared to the same period in 2015. This is the first quarterly data after the EU referendum but it is unlikely to be very reliable as an early indicator of how the market in London will be affected.

It does not appear that there will be drastic change in activity for the foreseeable future in a London market which has been stable for several years.

Greater London house purchase lending in the third quarter

Quarter-on-quarter affordability metrics for first-time buyers remained relatively unchanged with the typical amount borrowed at £260,000 (£134,900 was the UK average) from £259,000. The total household income of borrowers in London was £64,700 (£40,500 was the UK average) from £64,500. Overall, the median income multiple increased from 3.98 to 4.02 (3.54 was the UK average).

London home movers saw the average median advance increase from £324,300 to £336,300 (£172,800 was the UK average), and household income decreased to £87,500 (£55,200 on average UK-wide) from £84,800, with the typical income multiple decreasing slightly from 3.98 to 3.97 (3.27 was the UK average).

Chart 1: Number of loans to home-owners, 2007-2016

 20161123 Greater London Q3 2016 chart one

Source: CML Regulated Mortgage Survey     

Download data

Table 1: Number of loans for house purchase and remortgage


House purchase





Home owners

Q3 2015




Q2 2016




Q3 2016




Change on Q2 2016




Change on Q3 2015




Table 2: Value of loans for house purchase and remortgage


House purchase (£m)

Remortgage (£m)

  FTBs Movers Home owners

Q3 2015

3,300 3,900 3,600

Q2 2016

2,900 2,500 4,200

Q3 2016

3,100 3,100 4,400

Change on Q2 2016

+6.8% +24.9% +5.2%

Change on Q3 2015

-4.6% -21.9% +24.4%

 20161123 Greater London Q3 2016 FTB affordability infographic

20161123 Greater London Q3 2016 home mover affordability infographic

Notes to editors

1. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 97% of all residential mortgage lending in the UK. There are 11.1 million mortgages in the UK, with loans worth over £1.3 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 fourth quarter of 2016 will be released on Wednesday 22 February 2017.

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