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  4. Scotland home buyers down 3% in fourth quarter

Scotland home buyers down 3% in fourth quarter

Published: 22 February 2017

In the fourth quarter:

  • Home buyers borrowed £2.2bn for house purchase, down 0.5% quarter-on-quarter and 3% year-on-year. They took out 16,800 loans, down 1% compared to the previous quarter and 3% on the fourth quarter 2015.
  • First-time buyers borrowed £910m, down 3% on the third quarter but up 5% on the fourth quarter last year. This totalled 8,400 loans, down 2% quarter-on-quarter but up 5% year-on-year. 
  • Home movers borrowed £1.3bn, up 1% quarter-on-quarter but down 7% compared to a year ago. This totalled 8,400 loans, unchanged quarter-on-quarter but down 10% compared to the same quarter in 2015.
  • Remortgage activity totalled £870m, down 2% on the third quarter but up 10% on the same quarter last year. This came to 7,200 loans, down 1% quarter-on-quarter but up 7% compared to a year ago.

In 2016:

  • Home buyers borrowed £8.3bn for house purchase, down 3% on 2015. They took out 63,500 loans, down 2% compared to the year before.
  • First-time buyers borrowed £3.4bn, up 5% on the previous year. This totalled 31,400 loans, up 5% on 2015. 
  • Home movers borrowed £4.9bn, totalling 32,100 loans, down 7% by value and 8% by volume on 2015.
  • Remortgage activity totalled £3.4bn, up 10% on 2015. This came to 27,900 loans, up 6% in 2015.

Carol Anderson, CML Scotland chair, commented:

First-time buyer lending continues to show healthy annual growth in Scotland. Overall, the picture is of a steady market, with affordability comparing favourably with the UK as a whole.

Affordability in Scotland

First-time buyers typically borrowed £99,800 (£135,000 in the UK overall), almost unchanged from the £100,000 average the previous quarter. The average household income was £33,500 (£40,200 in the UK overall), down from £33,700. The typical income multiple in Scotland of 3.03 (3.02 in the previous quarter) also compared favourably to the UK average of 3.56. 

Affordability metrics for home movers saw the typical amount borrowed this quarter was £140,000 (£172,500 in the UK overall), up from £135,300 the previous quarter. The average household income of a home mover was £50,700 (£54,900 in the UK overall), down from £51,000. This meant the typical home mover income multiple in Scotland was 2.80, up 2.76 from the previous quarter and the UK average of 3.29.

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

Chart showing number of loans for house purchase and remortgage in Scotland

Source: CML Regulated Mortgage Survey

Download data

Table 1: Number of loans for house purchase and remortgage in the fourth quarter of 2016

 

House purchase

Remortgage

 

FTBs

Movers

Home owners

Q4 2015

8,000

9,300

6,700

Q3 2016

8,600

8,400

7,300

Q4 2016

8,400

8,400

7,200

Change compared to Q3 2016

 -2.3%

0.0%

-1.4%

Change compared to Q4 2015

 +5.0%

-9.7%

+7.5%

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

 

House purchase (£m)

Remortgage (£m)

  FTBs Movers Home owners

Q4 2015

870 1,390 790

Q3 2016

940 1,280 890

Q4 2016

910 1,290 870

Change compared to Q3 2016

-3.2%  +0.8% -2.2%

Change compared to Q4 2015

 +4.6%  -7.2%  +10.1%

Table 3: Number of loans for house purchase and remortgage in 2016

 

House purchase

Remortgage

  FTBs Movers Home owners

2015

30,000 34,900 26,200

2016

31,400 32,100 27,900

Change year-on-year

+4.7%  -8.0% +6.5%

Table 4: Value of loans for house purchase and remortgage in 2016

 

House purchase (£m)

Remortgage (£m)

  FTBs Movers Home owners

2015

3,260 5,250 3,060

2016

3,410 4,880 3,380

Change year-on-year

+4.6%   -7.0% +10.5%

20170224 Scotland q4 2016 first time buyers affordability

20170224 Scotland q4 2016 home movers affordability

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 first quarter of 2017 will be released on Wednesday 24 May 2017.

Contact us

Gareth Hill

020 7438 8922

Sue Anderson

020 7438 8924

Bernard Clarke

020 7438 8923