You are here: Home - Mortgages - First Time Buyer - News -

First-time buyer and home mover numbers soar

0
Written by: Owain Thomas
15/08/2017
The government’s tax changes for buy-to-let landlords have opened the door to first-time buyers and home-movers as their numbers grew strongly in Q2 2017.

UK Finance noted that home-movers had their highest monthly activity levels for over a year and there was an especially high number of loans for first-time buyers.

Meanwhile, buy-to-let activity slumped between April and June.

The results were welcomed by many in the industry, although there have been calls from politicians and senior advisers to reverse the tax changes for landlords.

This appears unlikely given government policy aims to increase first-time buyers.

Home buyers dominate

According to UK Finance (formerly the Council of Mortgage Lenders), home buyers (which includes first-time buyers and home-movers) borrowed £34.4bn during the three months to June, up 18% on Q1 and 24% on the same period in 2016.

This equated to 183,300 loans, up 16% on Q1 and 9% on Q2 2016 respectively.

Home-movers were the biggest gainers of this swing away from buy-to-let, borrowing a total of £19.6bn, up 19% on Q1 and 21% year-on-year, from 92,200 loans, up 17% on Q1 and 13% respectively.

First-time buyers borrowed £14.8bn, which is up 18% on last quarter and 10% on Q2 2016, from 91,400 loans, which is a rise of 15% and 6% respectively.

These groups saw particularly strong performances in June, both borrowing 26% more than in May with a similar increase in the number of loans.

Remortgage and BTL dips

Remortgage activity fell in the second quarter by 11% compared to the first three months of 2017 to a total of £16.9bn, from 96,900 loans (down 12% on Q1). Both these figures were broadly in line with Q2 last year.

Gross buy-to-let lending totalled £8.4bn (down 6% on Q1) from 55,400 loans (also down 6% on Q1).

Both these figures were 5% up on Q2 2016, but this period was the slump following the spike in buy-to-let sales during spring 2016.

Busy month

UK Finance head of mortgages, Paul Smee, said the June figures showed a busy month in the mortgage market.

“Buy-to-let activity remains subdued compared to its 2015 peak but consistent month-to-month since the Stamp Duty changes in April 2016.

“But there are also signs of a softening market and we are not anticipating that this performance will be sustained in the second half of 2017.

“A slightly lop-sided market could well show some growth in house purchase lending but alongside reduced remortgage and buy-to-let activity,” he added.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
children saving
NS&I to close children’s bonds as it launches junior ISA

NS&I is to close its children’s bonds to new applicants from next month as it announces a new junior ISA...

Close