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Sideways Moving Market?

Sunday, May 28, 2017

The UK housing market appears to be 'moving sideways' mortgage lenders have said, as latest figures show a drop in borrowing. But is that the end of the story or is there more too it?

The Council of Mortgage Lenders (CML) has reported a sizeable fall in demand for loans during April. Mortgages worth £18.4bn were advanced during the month, an 11% drop on the figure for March, it said. However, it must be noted that, monthly mortgage lending figures tend to be volatile, and activity often drops in the spring.

Allowing for such a seasonal factor, the CML said the amount borrowed last month was higher than the average over the past year, and was 4% higher than in April 2016. The CML's senior economist, Mohammad Jamei, said: "The housing market appears to be, for want of a better phrase, moving sideways."

The CML also said that the number of first-time buyers taking out mortgages had overtaken the number of people moving house for the first time since 1996. Its research shows that while the number of home movers and landlords taking out mortgages is falling, the number of first-time buyers is rising.

"First-time buyers and remortgage customers appear to be buoying the market," said Mohammad Jamei. "Home movers are having less luck. Their activity has been subdued for some time now and the low number of movers means fewer properties for sale. This supply and demand imbalance will continue to underpin house price values, even as the rate of price rises slows."

In our experience this is correct and in fact one of the highest demand at the moment is for first time homes and mid range properties that would equally suit upsizing and luxury downsizing buyers. Plus after the re-ajustments required from the increase in stamp duty last year signs are pointing towards an increase in investments for buy to let purposes. If you have a property you would like to sell due to the limited number of properties coming onto the market you should find a high level of interest in yours from qualified buyers.

Article taken in part from

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