Home lending sees best Q1 for 9 years

According to the latest figures from chartered surveyor, e.surv, home lending in 2016 has seen its best opening quarter for nine years.

Related topics:  Finance
Warren Lewis
14th April 2016
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The data revealed that on average 71,710 house purchase loans were granted across the first three months of 2016 and possibly powered by a rush from buy-to-let landlords racing to beat April’s stamp duty changes.

However, March saw a monthly dip in lending as some landlords were too late to beat the stamp duty surcharges coming into effect on the 1st April. The month saw 67,173 overall house purchase approvals (seasonally adjusted) – 9.1% lower than the 73,871 seen in February. Despite this, March marked a return to normal activity with all borrowers, including first-time buyers, benefiting from a healthy range of mortgage products.
To date a total of 210,468 house purchase approvals have been granted this year, 13.5% higher than 185,356 in the first three months of 2015. House purchase lending has also risen annually – up 8.2% from 62,095 loans granted in March 2015.

Richard Sexton, director of e.surv chartered surveyors, comments: “So far, it’s been a spring of sustainable lending. After a storm of activity from buy-to-let owners trying to beat the stamp duty deadline there’s been some more recent uncertainty about what the lending market will look like post-regulation. March has seen a calmer lending environment while remaining buoyant. Yes, house purchase loan numbers are slightly down – but overall borrowing levels are highly encouraging.

Neither fears of the Mortgage Credit Directive, nor the stamp duty surcharge have been able to slow the momentum of current lending levels. Lending has proved yet again its resilience in the face of regulation and legislation. And it will be interesting to see how government initiatives, such as the lifetime ISA perform. March may not be the most impressive month numerically but it has set a sustainable standard for the rest of the year.
 
It’s particularly encouraging to see first-time buyers enjoying a promising start to 2016. A lot of attention has centred on the buy-to-let sector lately, and potentially now it’s time that the first-time buyer market moves into the spotlight.”

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