Lending for house purchase reaches a six year peak

The Council of Mortgage Lenders (CML) found that September saw an Increase by a significant 34 per cent in first-time buyer lending, with 23,600 taking out home loans, compared to the same month last year and despite a decline of 12 per cent from August.

The typical first-time buyer income multiple continued an upward trend as they typically borrowed 3.39 times their gross income. Despite this, the continued downward drift in mortgage interest rates have kept borrowers’ payment burden low.

Overall the usual seasonal dip seen in mortgage lending in September was no different this year but was up by 20 per cent compared to the same month last year, with lending in the third quarter at its highest since 2007.

There were 52,800 loans for home owner house purchase in September with a total value of £8.4 billion, down by 14 per cent on August. Overall in the third quarter of 2013, there were 170,700 house purchase loans advanced, worth a total of £27.1bn, which is the highest quarterly figure since the fourth quarter of 2007.

Loans advanced to home movers totalled 29,100 in September, which was down in volume by 16 per cent compared to August but up by 11 per cent compared to September last year. Home mover loans totalled £5.2bn in value in September, which was down 13 per cent on August but up 18 per cent compared to last year.

Home-owner remortgaging showed strong growth in September with a total of 32,900 remortgage loans advanced in the period, up 20 per cent compared to August and 36 per cent on September last year. This totalled £4.7bn in value, an increase of 24 per cent on August and 47 per cent in value compared to September 2012.

Buy-to-let lending in the third quarter of 2013 grew with 43,900 loans advanced in this quarter which was up 16 per cent on the second quarter of 2012 and 36% compared to last year. These loans were worth £5.7bn which was up 19% on the previous quarter and 43% up compared to the same period last year.
Director general of the CML Mr Paul Smee, was quoted saying,: “First-time buyers were a key driver in the first half of 2013 but now home movers and remortgages are showing renewed strength which puts the market in a good position to continue momentum into the final few months of 2013 and the New Year.”
Managing director of Phoebus Software Mr Paul Hunt had said,: “By almost any measure you use, it’s clear that lending levels improved drastically in the last few months. The mortgage industry has found a way to sustainability and significantly boost activity in the property market.

“There are many new signs of life: house purchase lending is up by a fifth compared to a year ago and first-time buyer activity has jumped significantly. Lenders have been proactive in their approach to lending and their innovative steps to improve mortgage availability have heated up the mortgage market. Some of the roadblocks are being knocked off the pathway for prospective buyers, and the number of mortgage deals on the market has increased rapidly. As the Help to Buy scheme gains momentum it should kick-start the housing market from the bottom tier. Without doubt, the mortgage market is taking steps towards fertile grounds.”

Are you thinking of Buying or selling, call us now on 0300 11 11 239 or email info@afvestates.co.uk download our Home Sellers Guide here. (HSG) look out for our other guides coming soon.

Debate over housing stock crisis gathers momentum, AFVE begins to provide solutions.

Speaking at a Social Market Foundation debate, Professor Stephen Nickell of Nuffield College, Oxford was reported to have said “There are fewer vacant houses in England than in nearly any other country”.

Industry experts gathered at a Westminster location last week to discuss the chronic lack of housing facing this generation and what could be done to address this.

Professor Nickell said “People can’t get on the ladder these days when the houses aren’t there and prices are high because of a lack of competition”.

“Even in the boom times of 2006 not enough houses were being built where people wanted to live and there was no incentive to allow development. Then Labour constructed a control system for house building targets related to population growth and new building in England was up 170,000 in 2008; then the crunch came.”

Nickell pointed out that there are acres of space in places such as Oxford where houses could be built but they are on a green belt, planning permission is restricted or locals object.

“We know everyone would be opposed to developments in places where land is available, like Tumbridge Wells. You would need money to bribe people to agree to it. You would need to give them details of facilities that would be provided if they agreed to it.”

However, he also argued that no amount of money would lead residents to want more housing in their area. “Some people don’t see the housing stock problem as they believe there are a lot of empty houses in Britain, left by the deceased or second homes, but there are actually fewer vacant houses than nearly any other country, so it’s a red herring.”

He suggested that a proposal to increase social housing was “pie in the sky, as there’s no money there.”

Good news then that Armed forces and Veterans Estates (AFVE) are developing projects across the UK making use of disused properties for our military community and veterans to buy or rent.

Not only that but AFVE negotiate deals and discounts that are directly passed on to the client buying the property, often these are not available through normal channels, sometimes the discount is as high as 25% on certain property purchases.

Supporting our Armed Forces and Veterans Community has always been our key goal. We are planning for their future offering those people who have given so much for this country an opportunity like no other, getting them into housing, on the property ladder and offering financial discounts and support in the shape of our pre pay Mastercard ® Armed Forces and Veterans Privilege Card.

Click below for information on the Armed Forces and Veterans Property and Privilege campaign for our Forces Community.
Property and Privilege