Loans to homemovers in London in Q2 fell by 41% to reach £2.5bn, compared to the first three months of the year, according to latest data from the Council of Mortgage Lenders (CML).
Meanwhile, first-time buyers borrowed £3m from April to June, rising by 3% on the first quarter and 10% compared to the same time last year.
Remortgage activity was also on the up to reach £4.3bn, 6% higher than in Q1 and 19% on a year earlier.
However, Jeremy Leaf, north London estate agent and a former RICS residential chairman, pointed out that the figures were an indication of activity prior to the EU referendum in June, when the UK voted to leave the member state.
“Since the referendum we have noticed more of a ‘back to work’ mentality among home movers with more new buyers registering and more property listings. There is a new mood of realism with people getting on with it,” he said.
“First-time buyers taking advantage not only of rock-bottom mortgage rates but less competition from investors who are reluctant to join the buy-to-let market or expand their portfolios bearing in mind the changes to stamp duty and other regulations.”
Like London, first-time buyers played a major role in boosting activity in both Scotland and Northern Ireland, as fledgling buyers in Scotland borrowed £920m in Q2, 42% more than the previous quarter, while £200m was lent to first-time buyers in Northern Ireland, 25% more than in Q1. Lending in Wales painted a similar picture, as loans to borrowers purchasing their first home increased by 31% to reach £420m.
