You are here: Home - News -

House purchase lending suffers year-on-year slowdown

  • 18/06/2015
  • 0
House purchase lending suffers year-on-year slowdown
House purchase lending suffered a 10% year-on-year drop in the number of loans advanced in April falling from 53,700 to 48,200 transactions.

Figures from the Council of Mortgage Lenders revealed that the proportion of those loans advanced to first-time buyers remained the same at 46%.

Both borrower types experienced a yearly slowdown. First-time buyer transactions fell from 24,702 to 22,172 in April this year while home mover numbers dropped from 28,998 to 26,028 year-on-year.

On a monthly basis home movers fared slightly better. The number of home mover transactions rose from 25,168 in March to 26,028 in April while first-time buyers dropped from 23,232 to 22,172 month-on-month.

Buy-to-let transactions grew in April compared to April 2014 with the total number of transactions rising from 14,500 to 17,200. Remortgages rose from 7,000 in April 2014 to 9,100 in the same month this year although they experienced a monthly decline of 4%. Buy-to-let house purchase transactions rose from 7,500 to 8,100 year-on-year but fell by 7% between March and April.

Gillian Boden, founder of London-based lettings agent Househandlers, said: “Despite a year of steady growth, buy-to-let activity briefly went into reverse in the run-up to the May election as many would-be landlords held off on their purchases.

“Labour’s proposals to introduce three-year tenancies and new lettings rules which tipped the balance of power in favour of tenants prompted many property investors to pause for thought in April.”

But said that post-election there was an instant unblocking of the market and has since picked up considerable steam.

There are 0 Comment(s)

You may also be interested in

Read previous post:
George Osborne holding the budget box
Govt to scrutinise early exit charges under pension freedom

The government is to examine whether savers looking to take advantage of the pension freedoms introduced in April face 'excessive'...