According to the latest Household Finance Update from UK Finance, gross mortgage lending for July 2018 is 7.6 percent higher than the same time last year.
- The number of mortgage approvals by the main high street banks in July fell by 0.8 per cent year-on-year.
- Within the above figure, remortgage approvals were 2.8 per cent higher than for the same period a year earlier.
- There was a fall in house purchase and other secured borrowing of 0.6 per cent and 11.7 per cent respectively.
- The Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 2.3% in July 2018, unchanged from June 2018.
Average House Price hits new record
- The Halifax House Price Index reported that house prices in the three months to July increased by 3.3% against the same period in 2017.
- The average UK house price is now £230,280, the highest on record, indicating that house prices are still growing in many areas, despite the economic uncertainty over Brexit.
- There were 6,800 new mover mortgages completed in London in the second quarter of 2018, 8.1 per cent fewer than in the same quarter of 2017. The £2.77bn of new lending in the quarter was 8.6 per cent down year-on-year.
- A total of 15,200 new remortgages in London completed in the second quarter, some 16.9 per cent more than in the same quarter a year earlier. The £4.84bn of remortgages in the second quarter was 23.2 per cent more year-on-year as buyers were keen to search out competitive deals pre the expected Bank of England base rate rise last month
- The average first-time buyer in the capital is 32 and has a gross household income of £68,000.
- Almost 170,000 families have now taken advantage of Help to Buy since its launch in 2013. That has seen the Government provide more than £8.9billion of support, with the scheme extended to last until 2021 and an additional £10 billion pledged.
- Recent research suggests that the scheme – which was implemented primarily to help first-time buyers – is pushing up house prices and only helping wealthy people to move up the housing ladder. It is claimed that a fifth of households have used the scheme to upgrade their homes and that it has been used by a significant proportion of high income households.
The proposed review by Ministers comes as the government faces mounting pressure from mortgage lenders and property developers to announce plans to finance the policy beyond 2021, when the current tranche of funding runs out.
Henry Knight, Managing Director of Springtide Capital comments ‘Help to Buy is invaluable in London, where buyers need even more support to get onto the property ladder than in other areas of the country due to the more expensive London property market. It is key that the government move quickly in any review process that is put in place’