CML: London lending drops 16% in Q1

Home-owner house purchase in Greater London decreased in the first quarter of 2015 to 17,300 loans, which was down 17% compared to the fourth quarter 2014 and a year-on-year decline of 16% compared to the first quarter of 2014. These loans by value were £4.9bn, down 16% compared to the fourth quarter last year and down 11% on the first quarter of 2014.

First-time buyers in Greater London borrowed £2.4bn representing 10,100 loans. This was down compared to the fourth quarter 2014 by 16% in value and down 16% in number of loans. Compared to the first quarter of 2014, the total number of loans was down 14% and the amount borrowed decreased by 11%.

Home movers saw a decrease in numbers to 7,200 loans advanced in the period, valued at £2.5bn, which was down 18% by volume and down 15% by value on the previous quarter. Year-on-year comparisons show a decrease of 18% by volume and down 11% by value.

However remortgage lending increased totalling 10,800 loans (£2.9bn), which was up 10% by volume and up 13% by value. Compared to the first quarter of 2014, remortgage lending in London was up 2% by volume and 8% by value.

Conversely, house purchase lending in Scotland rose 15% in the first quarter year-on-year.

Home-owner house purchase decreased in the first quarter of 2015 to 12,100 loans, down 20% on Q4 and 1% year-on-year compared to quarter one 2014. These loans reflected lending of £1.7bn, down 13% compared to the previous quarter but up 15% on the first quarter 2014.