Autumn Statement sees home lending boost but first-time buyers yet to benefit
- Autumn Statement accompanied by house purchase lending rise as November 2015 sees 70,511 house purchase approvals, up 1.3% from 69,630 in October
- On an annual basis, house purchase lending is up 19% from 59,262 in November 2014
- Yet first-time buyers and other small-deposit borrowers not as well serviced as small deposit lending continues to stall – accounting for just 16.3% of total house purchase approvals
- Northern Ireland and the North West challenge Yorkshire as the best areas for first-time buyers
The Autumn Statement accompanied a house purchase lending jump this November, but first-time buyers are still finding themselves left out in the cold, according to the latest Mortgage Monitor from e.surv, the UK’s largest chartered surveyor.
November saw overall house purchase approvals climb to 70,511, up 1.3% from 69,630 in October to reach the highest monthly total seen since August this year.
However, while the Autumn Statement focused on helping more Brits get on the housing ladder, first-time buyers are yet to see the same benefits as other areas of the market. Despite the rise, lending to small-deposit borrowers (buyers with a deposit worth 15% or less of their property’s total value) totalled just 11,493 this November, showing no improvement on 11,489 in October. Small-deposit borrowers are falling as a proportion of overall house purchase lending, accounting for just 16.3% of approvals granted, down from 16.5% in October.
The latest First Time Buyer Tracker from Your Move reveals a similar picture. First-time buyer sales have dipped by 1.7% month-on-month from 28,600 in September 2015 to 28,100 in October 2015.