Mortgage lending grew strongly during the third quarter of the year in London, as more number of home-buyers borrowed loans, according to data released by UK Finance, a new trade association formed to represent the finance and banking industry operating in the UK.
Home buyers borrowed £6.74 billion for house purchase, up 10 per cent quarter-on-quarter and 13 per cent year-on-year. They took out 19,600 loans, up 9 per cent compared to the previous quarter and 6 per cent on the third quarter of 2016.
First-time buyers continue to constitute a sizeable proportion of the borrowers – they borrowed £3.31 billion, up 7 per cent on the second quarter and 9 per cent on the third quarter of last year. This equated to 11,200 loans, up 6 per cent quarter-on-quarter and 3 per cent year-on-year. The first-time buyers typically borrowed £275,000 (£139,500 in the UK overall), up from £268,747 in the previous quarter.
Home movers borrowed £3.44 billion, up 14 per cent quarter-on-quarter and 17 per cent compared to a year ago. This equated to 8,400 loans, up 14 per cent quarter-on-quarter and 11 per cent compared to the same quarter in 2016.
The average household income was £67,737 (£41,009 in the UK overall), up from £66,961 three months earlier.
UK Finance’s head of mortgage policy June Deasy said: “Affordability remains challenging in London, but borrowing by first-time buyers grew strongly in the third quarter and reached its highest level for a decade."