London home-buyers down 16% annually

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Home buyers in London took out 19,200 loans, worth £6.2bn, in the third quarter; a 12 per cent rise on the second quarter but down 16 per cent on the same period in 2015.

The value of these loans was up 15 per cent compared to the previous quarter but down 14 per cent compared to Q3 2015.

First-time buyers borrowed £3.1bn, up 7 per cent on the second quarter but down 5 per cent compared to the third quarter last year. This equated to 11,300 loans, up 7 per cent quarter-on-quarter but down 9 per cent year-on-year. 

Home movers borrowed £3.1bn, up 25 per cent on quarter two this year but 22 per cent compared to a year ago. This equated to 7,900 loans, up 20 per cent quarter-on-quarter but down 25 per cent on quarter three 2015.

Remortgage activity totalled £4.4bn, up 5 per cent on the second quarter and 24 per cent compared to the same quarter a year ago. This came to 14,500 loans, up 3 per cent quarter-on-quarter and 15 per cent compared to the third quarter 2015.

CML commented director general Paul Smee says: “There have been quarter-on-quarter increases in the number of loans for house purchase and remortgage but the number of first-time buyers and home movers has decreased when compared to the same period in 2015. This is the first quarterly data after the EU referendum but it is unlikely to be very reliable as an early indicator of how the market in London will be affected.

“It does not appear that there will be drastic change in activity for the foreseeable future in a London market which has been stable for several years.”