Recent data published by the Council of Mortgage Lenders has revealed a concerted increase in the number of first time buyers and home movers in London.
Figures for the third quarter of the year showed that first time buyer loans totalled 12,800 in the English capital during the three month period, which represents an increase of 17 per cent from the previous quarter. This was, however, down by one per cent from Q3 ins 2014.
Furthermore, the value of first time buyer borrowing increased by 24 per cent quarter on quarter and by four per cent year on year to reach £3.4 billion.
The market for home movers is also burgeoning at present, with a total of 10,800 loans provided during the third quarter.
This represents a 32 per cent increase on the preceding three months and is up by five per cent on the same period of 2014.
At the same time, the total value of the home mover market reached £4 billion in Q3. This represents impressive growth of 38 per cent on the second quarter of 2015 and 11 per cent on Q3 last year.
Remortgage activity was the weakest of the three major metrics for the London property sector, but an increase of eight per cent by volume and ten per cent by value was still witnessed in Q3 in comparison to Q2 this year.
Responding to the latest quarterly results, the director general of the CML said that the London market continues to go from strength to strength in the current financial climate and has delivered excellent growth during the past six months.
The number of people purchasing a home in the capital has now reached levels not witnessed since the height of the market in 2007 and prior to the global economic downturn that took such a considerable toll on the sector and many consumers during recent years.
He concluded that borrowers now appear to be taking advantage of the relatively favourable economic conditions right now and that means the outlook for the London property sector remains positive heading into the new year.
Overall, the third quarter results are indicative of the growing confidence that surrounds the London property sector at present, and it is a sentiment the CML hopes to see spreading to other parts of the country in the very near future.
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