UK housing market more stable
says Council of Mortgage Lenders
C2013 is expected to be a more stable and positive year for the UK housing and mortgage markets, the Council of Mortgage Lenders (CML) has said.
The CML have said a steady increase in lending for house purchases has signalled more activity in the UK property market.
However, first-time buyers are still required to provide a substantial deposit averaging 20% of the property value, in order to get a foot on the property ladder.
First Time Buyers accounted for 40% of all residential property mortgage loans in October 2012.
In total, there were 49,500 residential mortgages advanced for property purchases in October, the CML figures show. An increase of 13.8% compared with September 2012, a slow month for the UK housing market.
Mortgage lending actually saw a 10.2% annual rise when compared with lending activity in October 2011.
Director General of the CML, Paul Smee said “If the incremental improvements in house purchase lending that we are currently seeing persist as we expect them to, then next year should feel a more stable and positive year in the housing and mortgage markets.”
The CML have recently suggested that just 34% of all first-time buyers bought their first home without the financial help of other family members. That proportion dropped to only 28% in and around London.
However, Aaron Strutt, of mortgage broker Trinity Financial, said: “Building societies have been looking to increase their lending figures this year and they regularly offer cheaper mortgages than the biggest banks. Over the last few weeks, they have improved their first-time buyer rates in particular and this has helped to increase competition between the lenders.”
Difficulties in securing a residential mortgage remain part of the reason that property ownership has dropped in England and Wales.
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