The number of people getting themselves a footing on the property ladder for the first time has fallen in the past year in London, according to the latest mortgage data released this week.
Figures from the latest monthly report from the Council of Mortgage Lenders (CML) show that the past year has seen a drop in the amount borrowed by first timers, even though there has been a month-on-month rise in the capital throughout Quarter three.
It said that in the July to September quarter, there were some 11,300 loans afforded to newcomers to the market, which marked a seven per cent rise on the three-month period prior. However, this was markedly lower than a year ago, when Quarter three saw nine per cent more loans handed out in London than in 2016.
And it was the same story when it comes to value of mortgages afforded to buyers. It was reported that the total value of mortgages in the third quarter of this year for newcomers to the market was some £3.1 billion. This was seven per cent higher than in the April to June period this year, but as much as five per cent below the value of mortgages last year at the same time.
This shows that even though there has been an improvement in the number of first-time buyers in the last three months
“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,” said Paul Smee, director general of the CML.
“This is the first quarterly data after the European Union 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,” he added.
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