Gross mortgage lending for September was £21.5bn
According to the latest Household Finance Update from UK Finance, gross mortgage lending for September 2018 was £21.5bn, 1.2 percent lower than September 2017, due to cautious buyers.
- The number of mortgage approvals by the main high street banks in September was 9.1 percent lower than September 2017, and approvals for house purchases were 10.1 per cent lower.
- Within the above figure, remortgage approvals were 7.4 percent lower than for the same period a year earlier.
- The Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 2.2 percent in September 2018, down from 2.4 percent in August 2018.
- The Halifax House Price Index reports that the annual house price growth slows to 1.5 percent – which is its lowest rate for 5 years
The Autumn Budget Statement
The Government delivered it’s Autumn Budget and the Chancellor of the Exchequer, Philip Hammond reaffirmed his commitment to the UK housing market with a series of announcements. We’ve covered these in more detail here and in summary:
- A new Help to Buy scheme announced from April 2021
- Stamp Duty relief extended to first-time buyers buying shared ownership properties
- Affordable Homes Programme progresses
- Further grant funding in London announced
- Housing Revenue Account Cap is abolished
“This Budget provides positive news for those struggling to get on the housing ladder with certainty given on the future of Help to Buy and freeing up councils to deliver a new generation of council housing.”
Henry Knight, Managing Director of Springtide Capital commented:
“The decline in gross mortgage lending reflects weaker consumer confidence with affordability, Brexit and uncertainty over interest rates leading to more cautious buyers. However, measures announced in the recent Budget should help to improve accessibility for first-time buyers, although we expect the subdued activity in London’s housing market is likely to remain as buyers defer making major financial commitments.”