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First-time Buyers

London sees double-digit lending boost in third quarter

Christina Hoghton
Written By:
Christina Hoghton
Posted:
Updated:
24/11/2017

Lending in London grew strongly in the third quarter of this year, with homebuyers borrowing £6.74bn, up 10% quarter-on-quarter and 13% compared to the same period in 2016.

They took out 19,600 loans, up 9% compared to the previous quarter and 6% on the third quarter of 2016.

First-time buyers borrowed £3.31bn, up 7% on the second quarter and 9% on the third quarter of last year.

UK Finance’s head of mortgage policy June Deasy said: “Affordability remains challenging in London, but borrowing by first-time buyers grew strongly in the third quarter and reached its highest level for a decade.

“Borrowing by home movers grew even more strongly, but remained below its recent peak in the first quarter of 2016, when activity was boosted by the impending increase in Stamp Duty.”

Affordability bites

First-time buyers in the capital typically borrowed £275,000, compared to an average £139,500 across the UK. The average household income was £67,737 (£41,009 in the UK overall), up from £66,961 three months earlier.

The average home mover borrowed £353,995 in the third quarter with an average household income of £91,940, meaning an income multiple of 4.01.