CML reported that 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).
