September saw the South West & Wales region overtake London as having the greatest proportion of UK mortgage approvals, with 16.2% of all approvals. London’s share of UK mortgage market approvals in September was 16.0%, down 2.1% from 18.1% in September 2013.
Regions such as the Midlands and Yorkshire have also seen their proportion of UK house purchase approvals increase, proof that Help to Buy is transforming the property market outside of London. The North West has particularly benefited from the government scheme, and the proportion of higher LTV house purchase approvals in the region has risen 8% since September 2013 as a result.
Richard Sexton, director of e.surv chartered surveyors, explains:
“Help to Buy has stirred new vigour into much of the dormant property market, waking up many regions from housing market hibernation. We are now seeing areas of the country previously forgotten in the property market recovery experiencing a surge in demand, largely thanks to Help to Buy. Young, low income and first time buyers are now looking for first homes across the country, taking advantage of lower house prices in much of the UK.
“London’s grasp of the property market has shown signs of loosening, which is welcome for some around the country looking for their ideal home. Yet this countrywide rebalancing does come with warning signs. London and the South East must look to increase their supply in future years or else face a market closed to many. The lack of first-time buyers in such areas is of course no surprise. There is much more to be done in both the lending of mortgages and building of homes.”
