First-time buyer mortgages up by a third
First-time buyers took out 6,600 more loans in April than a year ago despite monthly slowdown
Alex Johnson has been part of The Independent's online team since 2007. He has been writing about microarchitecture on his internationally-acclaimed Shedworking blog since 2006 and is the author of Shedworking: The Alternative Workplace Revolution. His latest book is Bookshelf, published by Thames & Hudson.
Thursday 12 June 2014
Latest mortgage figures show that the number of loans to first-time buyers rose by only one per cent in April compared to March, but were 37 per cent higher than in April 2013. By value, lending was 52 per cent higher.
The report from the Council of Mortgage Lenders also shows that the number of loans to home movers increased in April by 11 per cent compared to March and by 30 per cent compared to the same time last year.
The average loan for first-time buyers was £121,500 in April, up from £118,750 in March
"First-time buyers and home movers continue to be key drivers in the growth of the market and despite fears that MMR preparations may hinder this momentum, we have seen a continued year-on-year upward trend every month in 2014," said Paul Smee, director general of the CML.
Brian Murphy, Head of Lending at Mortgage Advice Bureau said that while the number of first-time buyers taking out mortgages has more than doubled since April of last year, the monthly growth of one per cent was a "clear sign" that the rise is slowing.
"Post-MMR the profile of mortgage applications has significantly altered. This increased focus on affordability means first-time buyers, who do not have any equity to fall back on, may need some extra support as new lending rules bed in."
Simon Crone, Vice President Mortgage Insurance Europe for Genworth agreed that the figures indicated a "visible slowdown" in the first time buyer market.
"A one per cent monthly rise in first-time buyer loans refutes the idea that activity is racing out of control," he said. "First-time buyers are clearly feeling the greatest impact of tightening affordability criteria under the Mortgage Market Review
Stuart Law, CEO of Assetz, pointed to the figures showing a 43 per cent year-on-year increase in the buy-to-let figures.
"Investors are increasingly heading for hotspots away from London," he said, "and in particular northern cities where employment is strong, in search of higher yields are greater and long term capital appreciation."
George Spencer, chief executive officer of lettings agency Rentify, said: "With the number of buy-to-let mortgages up 49 per cent on the same month last year, the sector continues to go from strength to strength. However, the 38 per cent increase in buy-to-let remortgages shows that landlords are continuing to seek out the best deal for their investment, with many opting for fixed-rate mortgages as a defence against the rumoured interest rate rises.
"In the short term, the buy-to-let market should remain strong as it is under-pinned by a shortage of affordable homes to buy. However, it remains to be seen what long-term effects the government’s plans to make it easier to build new houses for sale, announced in last week’s Queen’s Speech, will have on the rental market."
A first-floor flat with two bedrooms, a spacious reception room and communal grounds in a leafy part of London
A three-bedroom flat with a spacious rootop terrace and balcony, accessed from a private gated courtyard
A Grade II-listed pile with six bedrooms, stables and 39 acres of grounds in Standlake
A two-bedroom flat with boutique hotel-style interiors, close to the foodie haunt of West End Lane
A two-bedroom flat in a beautiful old vicarage, with many original features, close to the city centre
A three-bedroom 16th-century home with an aga kitchen, private gardens and heated outdoor pool, in Hadleigh
A three-bedrom home in sought-after Queen's Gate Mews, with Italian marble-finished bathrooms
Surrounded by glorious countryside in the village of Udimore, sits this impressive four-kiln oast and barn conversion
A five-bedroom house in the picturesque village of Kettlewell, north Yorkshire
An 18th-century former coaching inn with original staircase, open fireplaces and beams throughout
A Grade II-listed Georgian town house with three bedrooms and a south-facing courtyard, near Arundel Castle
Feel on top of the world at this über chic penthouse on the 37th floor of one of Europe’s tallest blocks.
A Grade II-listed Victorian villa with six bedrooms and two further cottages, all with spectacular sea views
A grade II-listed, Georgian cottage with mature 50ft garden, perfect for summer entertaining
A magnificent Georgian pile with turrets, seven bedrooms, a heated pool and four acres of gardens
Fairoak Farm has five bedroom suites, gym, outdoor swimming pool and golf course
Chic two-bedroom river-fronted flat with a private lift that delivers you directly to your home
A spectacular seven-bedroom Tudor pile, once owned by Henry VIII, with 18 acres of land
A seven-bedroom Georgian property previously used as a picturesque wedding venue
A split-level flat in a church conversion with two en suite bedrooms and 1,200sq ft of living space
A three-bedroom bungalow situated behind an impressive stone wall, £645,000
Windsor Castle overlooks this three-bedroom Victorian cottage located on one of Windsor's smartest roads
Chapel House is a former vicarage with nine bedrooms in the beautiful Upper Wye Valley
A five-bedroom B&B and separate owner's accomodation with potential for conversion
Enjoy summer by the Thames in this two double-bedroom converted warehouse in Rotherhithe village
A one-bedroom, luxury apartment with private gym and concierge service in Moorgate
A four-bedroom house in Hermitage Gardens with three reception rooms and landscaped gardens
A seven-bedroom Grade II-listed property with a separate self-contained apartment
A five-bedroom Victorian house with three reception rooms and galleried landing, £695,000
A six-bedroom farmhouse with five acres of land in a former cloth-making village
A secluded seven-bedroom detached house with large private garden, £490,000
A three-bedroom cottage overlooking Sarratt village green with open fires and solid oak floors
A three-bedroom maisonette flat in a Grade I-listed, Georgian townhouse in a sought-after location
A one-bedroom apartment located within a private gated development, north of Turnham Green
Look forward to a brighter future at two-bedroom Sunny Cottages, ideal for Londoners looking to downsize
A three-bedroom red-brick cottage with outbuildings and pretty gardens, £200,000
This three-bedroom flat within a former textile factory spans the corner of the fourth floor and has a balcony
A charming four-bedroom Oxfordshire cottage with oak floors and chunky-beamed ceilings, £465,000
A beautiful one-bed flat in a sought-after portered block, with access to Norland Square communal gardens
A one-bedroom flat within a Sixties school conversion with high-spec design and open-plan kitchen, close to Lambeth North Tube, £435,000
A 17th century four-bedroom house, with open fireplaces, cellar and pool, £600,000
A three-bedroom, coach house with luxury open-plan living space and contemporary breakfast bar
A newly refurbished one-bedroom flat in the heart of Mayfair, close to Grosvenor Square
A charming four-bedroom house overlooking Burleigh Square Park, close to Thorpe Bay
A three-bedroom farmhouse with a large inglenook fireplace and exposed beams
Life & Style blogs
Scottish independence: English people overwhelmingly want Scotland to stay in the UK
Isis threat: Cameron wants an alliance with Iran
Crisis? What crisis? A visiting US doctor gives the NHS a rave review
Ukip MEP calls for reintroduction of death penalty on fiftieth anniversary of last deaths
Russell Brand calls for Israel boycott: Comedian urges big businesses that 'facilitate the oppression of people in Gaza' to pull funding
Michael Brown shooting: Chaos erupts on the streets of Ferguson after autopsy shows teenager was shot six times – twice in the head
- 1 James Foley 'beheaded': Isis video shows militant with British accent 'execute US journalist' – and warns Obama of more to come
- 2 ALS ice bucket challenge co-founder Corey Griffin drowns aged 27
- 3 Cilla Black defends Cliff Richard: 'I am positive that the allegations are without foundation'
- 4 Nicki Minaj finally releases predictable 'Anaconda' video
- 5 James Foley 'beheading': Met police warn public watching murder video could be criminal offence
£45000 per annum: Harrington Starr: Quantitative Analyst (Financial Services, ...
Negotiable: Harrington Starr: Application Support Engineer (C++, .NET, VB, Per...
Negotiable: Harrington Starr: C# .NET Software Developer (Client-Side, SQL, VB...
£40000 - £60000 per annum + Benefits + Bonus: Harrington Starr: C# Developer (...