The latest report released by Council of Mortgage Lenders (CML) in the UK reveals that the first-time buyers borrowed £5.1bn for home-owner house purchase in December last year, up 9 per cent on November and 13 per cent on December 2015. This shows that the home-buying activity among first-time home-buyers is on the rise in the UK.
As many as 32,000 loans were approved for first-time home-buyers during December 2016. First-time home-buyers are looking for quality homes, as housing prices continue to remain out of reach for many of them, especially in London. There seems to be a buoyancy in this category, as more number of first-time home-buyers is entering the housing market.
During the last four months of 2016, first-time home-buyers took 90,800 loans totalling £14.3bn to purchase homes.
However, for the whole of 2016, the data revealed by CML is interesting. The first-time buyers borrowed £53.2bn for home-owner house purchase in 2016, up 13 per cent on 2015. “This totalled 338,900 loans, up 8% from the previous year. First-time buyer borrowed more in 2016 than any other year since our records began in 1974,” reported CML.
These are critical findings for the housing sector because the demand from first-time home-buyers is further likely to add pressure on the supply side, which is currently not able to meet the growth. As the aspirations of first-time home-buyers grow, it becomes imperative for the stakeholders of the housing sector to increase the pace of delivery of new homes to the market.
2016 could have been a potentially destabilising year of regulatory and political change, but the mortgage market has been resilient and adaptable. Home-owner house purchase lending increased, though the buy-to-let sector's positive lending performance has been driven primarily by remortgaging: Paul Smee, Director General, CML