The gross mortgage lending is estimated to have reached £18.4 billion in April, an increase of 4 per cent when compared to the corresponding period in 2016. This indicates the increased activity in the UK residential property market.
Data released by the Council of Mortgage Lenders (CML) shows that home-buying is buoyant across the UK. The CML’s members are banks, building societies and other lenders, who together undertake around 97% of all residential mortgage lending in the UK. There are 11.1 million mortgages in the UK, with loans worth over £1.3 trillion, and the data provided by the CML reflects the health of the housing market in the UK.
According to the CML, first-time home-buyers and remortgage customers appear to be buoying the market, as low mortgage rates are encouraging borrowers to remortgage and attractive government schemes are helping first-time buyers. The CML expects this trend to continue over the coming months.
In London, home-buyers borrowed £5.4 billion for house purchase, as they took out 16,700 loans with first-time buyers accounting for £2.8 billion. London witnessed the traditional seasonal dip in activity in the winter months as expected, as persisting supply and affordability issues continued exerting some restraint on growth. The activity is predicted to pick pace in the summer months.
The average household income was £64,100 (£40,000 in the UK overall), unchanged from the previous quarter. The typical income multiple in London of 4.00 (down from the previous quarter) also compared to the UK average of 3.53.