The Mortgage Advice Bureau’s mortgage index for June noted continued fragmentation within a broadly steady market, with all regions bar the South East, London, and the North East showing modest growth in purchase loan amounts.
The average purchase loan in June was £175,929, was also almost unchanged monthly and annually, increasing from £175,487 and £175,151, respectively.
The biggest monthly gain was in Wales, where the average purchase loan jumped 5.6 per cent (£130,187 to £137,433) from May to June – 11.5 per cent annually.
This was followed by the East of England, with a rise of £145,172 to £152,702 giving a monthly change of 5.19 per cent. However, this is down 7.9 per cent from June 2017’s total of £165,778.
At the other end of the scale, the average purchase loan amount in Greater London dropped 2.68 per cent, from £334,720 to £325,736. This is also down 9.0 per cent from a year ago, when the average amount stood at £357,955.
The average purchase price nationwide was flat: £251,573 in June as compared to £249,862 in May and £250,216 in June 2017, and the average applicant age for a residential mortgage, at 36, was unchanged too, monthly and annually.
Mortgage Advice Bureau head of lending Brain Murphy says: “Feedback from our network suggests that in the current climate, those sellers who are succeeding in finding a buyer quickly are those who are most realistic, rather than ambitious, about their asking price.
“Even though there is still a dearth of available homes for sale in many regions, vendors who are aiming to push the boundaries of the ceiling price for the road are seeing their properties sticking, rather than finding that the law of scarcity is working in their favour as might normally be the case.”
Murphy also notes the average price for a first-time purchase being largely unchanged monthly at £211,920 as “encouraging,” because first time buyers generally underpin the rest of the market, [so] affordability at this end of the market is one trend that many will hope continues over the coming months.”