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.

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  4. Home buyers in Wales up 24% in the second quarter of 2017

Home buyers in Wales up 24% in the second quarter of 2017

Published: 23 August 2017

In the second quarter in Wales:

  • Home buyers borrowed £1.1bn for house purchase, up 26% quarter-on-quarter and 19% year-on-year. They took out 8,100 loans, up 23% compared to the previous quarter and 14% on the second quarter 2016.
  • First-time buyers borrowed £490m, up 26% on the first quarter and 17% on the second quarter last year. This totalled 4,200 loans, up 24% quarter-on-quarter and 14% year-on-year.
  • Home movers borrowed £580m, up 26% quarter-on-quarter and 21% compared to a year ago. This totalled 3,900 loans, up 22% quarter-on-quarter and 15% compared to the same quarter in 2016.
  • Remortgage activity totalled £470m, down 10% on the first quarter but up 4% on the same quarter last year. This came to 4,100 loans, down 11% quarter-on-quarter but up 2% compared to a year ago.

Julie Ann Haines, Chair, UK Finance Wales Mortgage Committee, commented:

It is very positive to see growth among both first-time buyers and home movers, making this the strongest second quarter for home buying activity in Wales since 2007. Affordability continues to be better in Wales than the UK overall, and with attractive mortgage rates and a wide range of choice in the market currently; we expect this level of activity to continue going forward.

Affordability in Wales

First-time buyer affordability in Wales remained positive in the second quarter when compared to the UK overall. First-time buyers typically borrowed £109,300 (£137,700 in the UK overall), up from £106,200. The average household income was £34,100 (£40,800 in the UK overall), up from £33,000. The typical income multiple in Wales of 3.31 (unchanged from the previous quarter) also compared favourably to the UK average of 3.58.

Home movers borrowed an average this quarter of £135,000 (£178,200 in the UK overall), up on £130,200 the previous quarter. The average household income of a home mover was £46,600 (£55,100 in the UK overall), up from £46,500. This meant the typical home mover income multiple in Wales was 3.00, compared to 2.90 the previous quarter and the UK average of 3.37.

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

20170823 Wales Q2 2017 MLT chart 1

Source: UK Finance Regulated Mortgage Survey

Download data

Table 1: Number of loans for house purchase and remortgage in Wales

 

House purchase

Remortgage

 

FTBs

Movers

Home owners

Q2 2016

3,700 3,400 4,000

Q1 2017

3,400 3,200 4,600

Q2 2017

4,200

3,900 4,100

Change compared to Q1 2017

+23.5% +21.9% -10.9%

Change compared to Q2 2016

+13.5% +14.7% +2.5%

Table 2: Value of loans for house purchase and remortgage in Wales

 

House purchase (£m)

Remortgage (£m)

  FTBs Movers Home owners

Q2 2016

420 480 450

Q1 2017

390 460 520

Q2 2017

490 580 470

Change compared to Q1 2017

+25.6% +26.1% -9.6%

Change compared to Q2 2016

+16.7% +20.8% +4.4%

20170823 Wales Q2 first-time buyer affordability infographic

20170823 Wales Q2 home movers 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.

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