House purchase lending to home-buyers decreased month-on-month in September totalling 58,600 loans. This was down 7% compared to August with the value of these loans totalling £10bn, a fall of 8%. Compared to September 2013, the number of loans increased by 13% and the value of lending by 20%.
In the third quarter, house purchase lending totalled 188,000 loans, up 8% on quarter two and up 12% on the third quarter 2013. This totalled £32.4bn, an increase on the second quarter of the year by 13% and up 21% on the same period last year.
Total gross lending in September was £18.1 billion. This was 1% lower than August (£18.2 billion) but 12% higher than September last year (£16.1 billion), according to the Bank of England. Gross mortgage lending for the third quarter of this year was therefore an estimated £56.1 billion. This represents a 9% increase from the second quarter of this year, and a 14% increase on the third quarter of 2013 (£49.1 billion).
Remortgage lending activity saw an increase month-on-month in September, with the number of remortgage loans totalling 28,300. This was 20% up on August but 12% down on September last year. The value of these loans (£4.4 billion) was up 22% on the previous month but down 6% on September last year.
In the quarter, remortgages loans increased by 2% to 77,200 on the previous quarter, but down 13% on the third period of 2013. By value, remortgaging totalled £11.9 billion, 3% up on the second quarter but 6% up on Q3 2013.
Paul Smee, director general of the CML, commented:
“We are approaching the end of twelve months of change, transition and growth. This has been a year when lenders and intermediaries have been put under increased spotlight from regulatory, political and media spheres and have risen to meet the challenges. The lending market is healthier than it was a year ago, and set to remain so. Remortgaging has returned as a driver of lending volume in the buy-to-let sector. But any fears of over-heating in the housing market are now dissipating as house purchase lending activity seems to be softening.”
David Newnes, director of Your Move and Reeds Rains estate agents, comments:
“It hasn’t been plain sailing for mortgage lending this year, but the market has successfully negotiated the rocky waters of regulatory change and appears to have reached a safe harbour. As with any market, we’re still experiencing some natural rise and fall month-on-month but overall house purchase lending hasn’t been this buoyant since before the crisis, as growth shores up. But it is important that lending trickles down to the buyers that need it most – to keep the recovery afloat in regions outside of the South East of the country where property prices are currently just treading water."
