House purchase approvals grew slightly for the first time in three months in September after a summer slowdown, according to the latest Mortgage Monitor from e.surv, the UK’s largest chartered surveyor.
There were 65,469 house purchase approvals in September, up 2 per cent on August. Despite this pick-up, house purchase approvals dipped marginally by 1.8 per cent on an annual basis in September.
There were 11,588 house purchase approvals to borrowers with a deposit worth 15 per cent or less of the total value of their property last month.
This is the second highest monthly number of such approvals since June 2008, with June 2014 the only month to outstrip September.
Higher loan-to-value approvals have now risen 12 per cent since the start of the year, and are up 44.8 per cent on September 2013.
Richard Sexton (left), director of e.surv chartered surveyors, explains: “First-time buyers are the backbone of the UK’s mortgage market and the foundation on which the mortgage market’s post-recession recovery has been built.
“But after an extended period of flat wages, low interest rates and high inflation, many of them are still struggling to save for a deposit. Help to Buy has provided a route around that barrier. It is enabling worthy, responsible borrowers – many of whom are being held back from the property market by the economic downturn – a chance to get onto the ladder regardless.”
Many regions are benefiting from the higher loan-to-value lending trend, which is largely thanks to Help to Buy, Sexton says.
“Young, low income and first time buyers are now looking for first homes across the country, taking advantage of lower house prices in much of the UK.”
However this “countrywide rebalancing” can be taken as a warning, Sexton says.
“London and the South East must look to increase their supply in future years or else face a market closed to many. The lack of first-time buyers in such areas is of course no surprise. There is much more to be done in both the lending of mortgages and building of homes.”
Loading ...