London mortgage lending falls as rest of UK market grows, CML data shows
Mortgage lending fell in London in the second quarter of the year amid a growing market in the rest of the UK regions, according to data from lenders.
London mortgage borrowing of £5.5bn in the second quarter was a 23% fall on the first quarter and 3% fall on a year ago, the Council of Mortgage Lenders calculated, as a rise in first-time buying was not enough to offset a big decline from those moving house.
Numbers of mortgages fell 17% to 17,500 quarter-on-quarter and 8% compared to the second quarter 2015.
First-time buyers borrowing increased 3% to £3.0bn, up 10% compared to the second quarter last year.
London home movers borrowed £2.5bn, down 41% on the prior quarter and a 14% yearly fall, while remortgage activity rose 6% in the quarter to £4.3bn and 29% compared to a year ago.
Paul Smee, director general of the CML, said first-time buyers continued to drive mortgage lending but the opposite effect from home movers was "probably just reflecting a rebalancing after the very strong first quarter as many buyers sought to complete purchases before changes to stamp duty.
“The second quarter data largely pre-dates the EU referendum. While it will take time to see how Brexit may affect the market, the London mortgage market clearly remains active and firmly open for business.”
Home buyers in Scotland borrowed £2.2bn for house purchase, up 23% quarter-on-quarter but down 1% year-on-year.
Northern Ireland had the best performing second quarter of a year for house purchase lending since 2007, with lending up 3% quarter-on-quarter and 13% year-on-year.
Home buyers borrowed £920m for house purchases in Wales, up 8% quarter-on-quarter and 11% year-on-year, led by first-time buyer lending up 31%.