In another sign, which indicates that the residential real estate market is bouncing back in the UK, the home-buying activity has increased by 7 per cent, data released by the Council of Mortgage Lenders (CML), shows.
“Home buyers borrowed £8.9bn, up 6% on January and 2% on February 2016. This came to 48,600 loans, up 7% on January and 2% on February 2016,” CML said in a statement.
The contribution of the first-time home-buyers to the housing activity has also increased in February. First-time buyers borrowed £3.8bn for home-owner house purchase, up 6 per cent on January and 12 per cent on February 2016. They took out 24,200 loans, up 7 per cent month-on-month and 11 cent year-on-year.
The CML is of the view that seasonal factors traditionally keep the market quieter in winter months, but 2017 began relatively strong on the house purchase side. “Borrowers took out more loans to purchase a home in the first two months of 2017 than any year since 2007. This is due to strong first-time buyer activity which has consistently matched home mover borrowing over the past six months, a trend not seen in the UK for 20 years. House purchase activity on the buy-to-let lending side remains weak,” CML Director General Paul Smee remarked.
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The average amount borrowed by home movers in the UK increased to £176,000 from £175,300 the previous month