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TODAY'S OTHER NEWS

New mortgage figures confirm housing market is gently slowing

New figures from the Council for Mortgage Lenders add weight to the argument that the housing market is gently slowing. 

Home-owners borrowed £10.5 billion for house purchasing through 57,800 loans; the total borrowed was down eight per cent month-on-month and 11 per cent year-on-year. 

First-time buyers borrowed £4.5 billion, down eight per cent on September and two per cent on October last year. 

Landlords borrowed £3 billion, up seven per cent month-on-month but down 21 per cent year-on-year. This came to 18,600 loans in total.

Gross buy to let lending increased in October compared to September but lending remained down on 2015 levels due, the CML says, to the changes to stamp duty on second properties introduced in April. Nearly two thirds of buy to let loans were remortgages rather than house purchase.

“Buy to let house purchase lending remains weak following the change to stamp duty on second properties in April. With lenders now tightening affordability criteria ahead of the Prudential Regulation Authority’s stress tests and the forthcoming tax relief changes next year, these lower volumes are likely to be the ‘new normal’” warns Paul Smee, director general of the CML.

The average amount borrowed by home movers increased to £171,700 in October from £171,000 in September, while the average home mover household income decreased slightly to £54,900 from £55,100. 

  • Fake Agent

    I like the use of the word "gently slowing". Sounds so much more reassuring. Maybe we can make this more of a thing, using language that is less hyperbolic and sensationalist when it comes to things like the property market, the economy and politics. Then again, we live in a world of clickbait and the permanently outraged, so perhaps not.


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