Comment on CML Regional Lending in London
Tue 25 Aug 2015
Peter Rollings, CEO of Marsh & Parsons, comments: "Borrowing is moving in the right direction in the capital, but has lost some of its speed, and is still falling short on last year. The capital has been encumbered by top-end taxation changes of late, and this has diluted buyer demand somewhat. While this beds in, London may will be one-step behind of the rest of country in terms of sales activity and house price growth in the coming months.
"But this has allowed remortgaging activity to enjoy a moment of glory showing the only real substantial annual growth in the capital during Q2, as homeowners shop around for the best deal while borrowing rates are so favourable. This atmosphere might well continue for the remainder of this year now Black Monday has made an interest rate rise unlikely before 2016."
CML Regional Lending Statistics for London Q2 2015:
- Home-owner house purchase activity in Greater London came out of the traditional seasonal dip to show growth in the second quarter by volume and value, but levels were still down compared to the same quarter last year. The number of house purchase loans rose 9.3% quarter-on-quarter, but showed an 11.3% fall on an annual basis.
- During Q2, there were fewer borrowers in London than in the same period in each of the two preceding years.
- First-time buyer activity saw similar trends with an increase in levels on the first quarter of the year, but down on the same quarter last year.
- House purchase lending this quarter was driven mostly by first-time buyers, who made up 57% of all house purchase activity.
- Unlike house purchase activity, remortgage lending had quarter-on-quarter and year-on-year growth in both volume and value. The number of remortgage loans was up 7.4% on Q1 2015, and 6.4% on Q2 2014.