London demand hots up in Q3
Home purchase lending totalled £7.1bn with 23,900 loans being issued, as the value and volume rose by 15% and 12% respectively on Q2 2014.
Lending to first-timers totalled £3.3bn with 13,300 loans being issued in Q3, up 11% and 8% on the previous quarter.
To homemovers there were 10,600 loans issued in Q3, up 16% on the previous quarter, while the total value of loans increased by 18% to £3.7bn.
Paul Smee, CML director general, said: “London lending is currently driven by both homemover and first-time buyer growth so borrowers can still find homes in London at their affordability level.
“Despite the growth of lending to its highest level for seven years, these figures have remained pretty consistent for the past 12 months which suggests a steady market.”
Compared to Q3 2013 the volume of loans increased by 6% for first-time buyers and 10% for homemovers, but remortgage volumes decreased by 3%; with 11,400 loans being advanced in Q3 2014.
In terms of the value of lending in Q3 2014 compared to Q3 2013 it increased by 10% for homemovers and 16% for first-timers.
First-timer deposits in the capital stood at £221,997 in Q3, up from £212,500 in the previous quarter, as on average they put down 24% of the property value compared to the UK average of 17%.
First-time buyers are continually buying more expensive properties, as in Q3 two thirds (66%) of first-timers bought properties priced above £250,000, up from 63% in Q2 and 54% in the third quarter last year.