increase in lending and house prices

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Latest figures show increase in lending and house prices

Newly released figures from the Council of Mortgage Lenders show resilience in buyer activity despite the feared impact of Brexit, with lending showing a year-on-year increase. In addition, figures from the Office for National Statistics show house prices also increased year-on-year in August.


CML data shows that in August:


  • Homeowners borrowed £12.2bn to buy a house, up 11% year-on-year.


  • First-time buyers borrowed £5.1bn, which is up by 24% from August last year.


  • Home movers borrowed a total of £7.1bn, up 3% compared to last August.


Director general of the CML, Paul Smee, said: “House purchase activity bounced back from a dip in July, reflecting resilience in first-time buyer activity. Mortgage rates remain at or close to historic lows, and the repricing of mortgages following August’s base rate cut should help to underpin a continuing, strong appetite for homeownership over the coming months.”


He went on to say: “Buy-to-let, by contrast, continues to operate at lower levels five months after the stamp duty change on second properties. This appears to be a long-term trend, and with lenders potentially tightening affordability checks ahead of the tax changes in April 2017, activity on the buy-to-let house purchase side may well remain at current levels.”


These figures come after announced that there were 12% more first-time buyer valuations in July of this year than in July the previous year, suggesting the property market is proving to be more resilient than was initially thought.


Furthermore, the latest figures from the ONS show house prices rose year-on-year in August, by an average of 8.4%. Unsurprisingly, London continues to be the region with the highest average house price at £489,000.


Ishaan Malhi, chief executive of mortgage lenders Trussle, said the figures “suggest that the immediate commotion caused by the EU result has yet to put the breaks on the price growth in the market.”


Looking to buy a home? Contact the Kingsley Hamilton Estates team today on 020 7078 0214, or send an email to, and we’ll get right back to you.