October housing market remains robust: MAB

Headline transaction levels remained at a healthy level in October with some regions reporting near-record months in terms of the number of clients both seeking purchase mortgages and completing their transactions.

The data also shows some upward movement in terms of values but MAB said this was largely due to low stock levels not supporting buyer demand.

MAB added that "significant regional differences have been becoming apparent for some time". Outside of London and the South East, activity was consistent on previous months, with average property purchase prices in Wales, the North East and East of England increasing but the average purchase loan size decreasing.

Explaining the figures, Brian Murphy, head of lending at Mortgage Advice Bureau, said: "This leads us to conclude that those existing home movers who are moving up the ladder in these areas are perhaps seeing a net gain in terms of the value of the property they are selling, meaning that they are benefitting from more equity to take into their next purchase, and therefore borrowing slightly less to fund the transaction."

Across the residential remortgage, first-time buyers and buy-to-let sectors, MAB said there was only slight movement in figures and no "significant changes to indicate the start of any particular trends at headline level".

Fixed rate mortgages continued in their popularity as lenders are holding or reducing rates in a bid to secure new business.

Brian Murphy concluded: "The currently benign lending climate is possibly assisting with the overall support of the market, given current political and economic headwinds."