Homebuyer activity in London has plummeted 19% in the past year as supply and affordability issues continue to hold back growth.
According to the Council of Mortgage Lenders, homebuyers took out 16,700 loans in the first three months, down 5% compared to the previous quarter and 19% on the first quarter of 2016.
First-time buyer activity was down 5% quarter-on-quarter and 3% for the year with 10,000 loans advanced.
Home movers took out 14,200 loans, up 10% quarter-on-quarter and 8% compared to a year ago.
There was a surge in remortgage activity with the number of loans advanced going up 13% on the fourth quarter and 7% compared to the same quarter last year to 14,200.
Paul Smee, CML director general, said: “A traditional seasonal dip in activity in the winter months is expected, but it has been more pronounced in London compared to the UK overall as persisting supply and affordability issues continue exerting some restraint on growth. We do expect activity will pick up as we go into the summer months.
“By contrast, remortgage activity was at an eight-year high in London. Attractive mortgage deals aided by low interest rates appear to have sparked a resurgence in activity that has seen consecutive growth year-on-year every quarter for three year.”
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