CML: House Purchase Loans Decline In November
Lending for house purchases across the UK dropped in November for home movers, first-time buyers and remortgaging, although Norwich letting agents may be interested to note that there was a year-on-year rise in buy-to-let lending.
This is according to the latest statistics from the Council of Mortgage Lenders (CML), which found that there were 25,900 first-time buyer loans during the month, a fall of 11 per cent from October. In addition, remortgage lending was down by eight per cent compared with the previous month, while lending to home movers also dropped by 13 per cent.
However, November did see 17,700 buy-to-let loans arranged, up by nine per cent on 2013, although it was down from the number agreed in October.
“The easing back of activity is not completely unexpected as there is usually a seasonal lending dip in the winter months and the major industry changes and more restrained market sentiment have inevitably caused month-to-month fluctuations over the last 12 months,” director-general of the CML Paul Smee remarked.
He went on to note that the organisation is now predicting that gross lending will grow over the next couple of years, reflecting the CML’s stance that the market is in a much more stable position now than it was a year ago.
This comes as the Royal Institution of Chartered Surveyors revealed that house price increases in the UK are tailing off, with potential buyers likely to be much more cautious moving forward because of the general election and tougher lending criteria.