Gross Mortgage Lending Figures January 2019

According to the latest Household Finance Update from UK Finance, gross mortgage lending for January 2019 was £21.6bn, 1.5% lower than a year earlier.

  • The number of mortgages approved by the main high street banks in January 2019 was 0.3 per cent higher than the same month the previous year.
  • Approvals for home purchase were 1.5 per cent higher and approvals for other secured borrowing were 6.8 per cent higher.
  • Following several months of strong growth in remortgaging earlier in 2018, remortgage approvals were 3.1 per cent lower than in the same month the previous year.

THE ECONOMY

The Office of National Statistics reported the Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 1.8% in January 2019, down from 2.0% in December 2018.

  • The Consumer Prices Index (CPI) 12-month rate was 1.8% in January 2019, down from 2.1% in December 2018.

HOUSING

HALIFAX HOUSE PRICE INDEX

House prices in the three months to January were 0.8% higher than in the same three months a year earlier – down from the 1.3% annual growth rate recorded in December.

  • On a monthly basis, house prices decreased by 2.9% in January, following a 2.5% rise in December
  • The average house price is now £223,691
  • House prices in the latest quarter (November-January) were 0.6% lower than in the preceding three months (August – October)

 Russell Galley, Managing Director, Halifax, said:

“Attention will no doubt be drawn towards the monthly fall of -2.9% from December to January, the second time in three years that we have seen a drop as a new year starts. However, the bigger picture is actually that house prices have seen next to no movement over the last year, with annual growth of just 0.8%”

Henry Knight, Managing Director of Springtide Capital commented:

 “The last quarter in 2018 saw even more first-time buyers get a foot on the housing ladder, due partially to the competitive deals on offer. With these mortgages completed and an uncertainty in the market in general surrounding Brexit, January 2019 was always going to be a cautious month in the market”

Bank of England Statistics for January 2019

Net mortgage borrowing by households fell slightly on the month to £3.7 billion, but was slightly below the £3.9 billion average of the past six months. Mortgage approvals for house purchase (an indicator of future lending) increased in January to 66,800, slightly above the average of the previous six months of 65,500. Approvals for remortgaging ticked-up to 50,400, marginally higher that the recent average of 48,900.

Sources:

https://www.ukfinance.org.uk/data-and-research/data/household-finance/household-lending-and-deposits

https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/january2019

https://static.halifax.co.uk/assets/pdf/mortgages/pdf/January-2019-Halifax-House-Price-Index.pdf

https://www.bankofengland.co.uk/statistics/money-and-credit/2019/january-2019