25th February 2015
Lending to home movers in London dropped by 20% in value and 15% in volume in the fourth quarter of 2014 compared to the three previous months.
There were 8,800 loans to home movers in the final quarter of 2014, valued at £2.9bn.
Lending to first-time buyers in the capital was down 11% in value in the final quarter of 2014, compared to the previous three months, at £2.9bn or 12,000 loans.
Remortgage lending declined in the fourth quarter totalling 9,800 loans (£2.5bn), which was down 12% by volume and down 13% by value compared to the previous quarter..
First-time buyers in London were advanced 48,800 loans representing £11.8bn in 2014. This was up 7% by volume compared to 2013, and 18% up by value.
Home movers in London were advanced 37,000 loans, which was down 1% on 2013. These loans totalled £12.5bn, which was up 10%.
Remortgage loans in London totalled 42,400 loans in 2014 representing £11bn. This was 1% up by volume compared to 2013, and 10% up by value.
The typical loan size for first-time buyers was £216,000 in the fourth quarter, down from £222,275 in the previous quarter. The typical gross income of a first-time buyer household was £56,314 compared to £58,000 in the third quarter.
The typical loan size for home movers was £276,355 in fourth quarter, up from £289,999 in the previous quarter. The typical gross household income of a home mover was £80,160 in fourth quarter compared to £83,592 in the third quarter.
Meanwhile Scotland, accounted for 6.6% of UK-wide annual house purchase activity.
Lenders advanced 27,700 loans to first-time buyers in Scotland totaling £2.9bn. This was 16% up in volume compared to 2013, and 23% up in value.
Home movers in Scotland took out 31,800 loans, 5% more than in 2013. The value of these loans was £4.6bn, up 10%.
There were 23,400 loans advanced for remortgage in 2014 totaling £2.6bn. This was 14% down by volume compared to 2013, and 9% down by value.
Wales accounted for 2.8% of the UK-wide house purchase activity.
First-time buyers in Wales were advanced 12,100 loans reflecting £1.3bn by value. This was 14% up in volume compared to 2013, and 20% up in value.
Home movers in Wales were advanced 14,000 loans, which was up 4% on 2013. These loans were worth £1.8bn, which was up 11%.
Remortgage lending in Wales came an annual amount of 12,800 loans totalling £1.3bn. This was 13% down in volume compared to 2013, and 7% down in value.
In Northern Ireland, first-time buyers were advanced 7,500 loans coming to £620m. This was 25% up in volume compared to 2013, and 35% up in value.
Lending in Northern Ireland accounted for 1.1% of the UK-wide annual house purchase activity.
Home movers in Northern Ireland were advanced 5,500 loans, which was up 38% on 2013. These loans came to £640m, which was up 49%.
Remortgage lending in Northern Ireland totalled 4,700 loans in 2014 which by value was £440m. This was unchanged year-on-year by volume compared to 2013, and 5% up by value.
Paul Smee, director general of the CML, said: “London is a unique market, with equally unique conditions and challenges, which will need a focus on all types of housing tenure going forward. 2014 had the highest annual level of borrowers buying a home in London since 2007, with first-time buyers leading that growth, but there have been recent signs of the market cooling.
“The dip in the last quarter of the year may suggests that affordability pressures do still persist in the Capital. Alongside a general steadying of lending across the UK, this may lead to slightly more subdued activity in 2015.”
Stephen Smith, director of Legal & General Mortgage Club and Housing, added: “These figures show that the housing market is moving at a different speed depending on where you are in the country as data from Northern Ireland and Scotland show. Overall we expect 2015 to be an even stronger year than 2014, with gross mortgage lending set to hit around £225bn up £19.4bn from 2014.”