Liquid error: wrong number of arguments (2 for 1) London Property Market Still Going Strong as Homebuyers Continue to Borrow | Marsh & Parsons Sales and Lettings Estate Agents London

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London Property Market Still Going Strong as Homebuyers Continue to Borrow

Tue 24 May 2016

The London property market is still going strong, as homebuyers continue to borrow in order to fund their
purchases, according to the latest mortgage lending data from the Council of Mortgage Lenders (CML).In the first
quarter (Q1) of 2016, homebuyers in the capital borrowed 7.1 billion for house purchase, up by 6% over the
quarter and 41% annually. This equated to 21,400 loans, which was down by 2% on the previous quarter, but up
by 20% compared to Q1 2015.First time buyer borrowing was down over the quarter, by 7%, but up by 19% when
compared to Q1 last year. This type of buyer borrowed 2.9 billion in the form of 10,700 loans down by 10%
quarter-on-quarter, but up by 3% on the year.London Property Market Still Going Strong as Homebuyers
Continue to BorrowThose moving home borrowed 4.2 billion in Q1 2016, up by 18% on a quarterly basis and
63% compared to last year. Some 10,600 loans were approved for home movers, up by 8% on the previous
quarter and 43% on last year.Remortgaging activity totalled 4 billion over the same period, up by 4% on Q4
2015 and 36% on the previous year. This totalled 13,500 loans up by 2% quarter-on-quarter and 21% compared
with Q1 2015.The Director General of the CML, Paul Smee, says: "The usual seasonal dip in lending in the first
quarter of the year didn't seem to impact London as strongly as the UK overall, mainly due to a strong uptick in
home mover activity. Remortgage lending also performed well, resulting in the highest first quarter remortgage
levels in the capital since 2009."The housing market in Greater London has some unique characteristics
compared to the rest of the UK more first time buyers, but lower overall levels of homeownership. Affordability
and the supply of housing remain critical factors for the London market, and we will be pleased to work with the
new mayor and his deputy on how to deliver appropriate strategy over his term of office."Estate agent Marsh &
Parsons has also recorded growth in the London property market.In Q1, the firm saw buyer demand increase by
9% annually in prime London, and by 19% in the outer prime belt.The number of registered buyers for every
available property for sale has risen to 14 in Q1, up from 13 buyers in the previous quarter and 12 in the same
period last year.The CEO of Marsh & Parsons, David Brown, comments: "Mortgage lending in London got off to a
lively start this year, jumping leaps and bounds ahead of 2015 levels across all sectors. And it's encouraging to
see home movers at the forefront of the pack at a time when the supply of new housing is dragging its heels, it's
vital that existing homeowners are taking opportunities to sell up and move up the property ladder, freeing up
properties at the lower end of the market."It's also a great vote of confidence in the capital. People sell their
homes when they recognise strong house price growth and the favourable returns to be made, plus the belief that
they'll be able to find a buyer easily. In London, all these elements are firmly in place. We saw buyer demand
increase 9% year-on-year in Q1, with an average of 14 buyers competing for every available property on the
market. It's important in the long-term that first time buyers in London remain similarly assured of the affordability
and possibility of climbing onto the ladder."

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