Home movers help continued housing market recovery

Harvey Harding
November 21, 2013

Mortgage lending in the third quarter of 2013 was at the highest quarterly level since 2007, the Council of Mortgage Lenders has said.

According to the latest figures, total home-owner house purchase lending in September was down 14% on August but up year-on-year by 21%.

First-time buyers took out 23,600 loans in September which was a 34% increase compared to September last year.

First-time buyer lending was also up 16% on the second quarter of 2013 and 34% up on Q3 from 2012.

Home movers lending decreased by 16% in volume compared to August but was up 18% compared to last year.

Third quarter lending for home movers was up 21% on the second quarter of 2013.

Home-owner remortgages in September were up 20% compared to August and up 11% in the third quarter compared to the second quarter of 2013.

Total buy-to-let loans advanced increased slightly to 14,600 loans in September, up 0.7% compared to August. Buy-to-let overall in quarter three of 2013 grew compared to the second quarter and the same period last year.

Paul Smee, director general of the CML, said: “The typical seasonal fall in lending in September was expected but we are seeing appreciable year-on-year and quarterly lending rises that suggests the market is continuing its recovery.

“First-time buyers were a key driver in the first half of 2013 but now home movers and remortgages are showing renewed strength which puts the market in a good position to continue momentum into the final few months of 2013 and the New Year.”