Number of London home buyers picks up sharply in third quarter

The number of people who purchased a house in London for the first time rose sharply in the third quarter, figures released on Wednesday showed.

According to the Council of Mortgage Lenders (CML), first-time buyer loans in London rose 17% quarter-on-quarter 12,800, although that marked a 1% decline on a year-on-year basis.

First-time buyers borrowed £3.4bn, 24% more than in the previous quarter and 4% more than in the corresponding period a year ago, while the number of home-movers loans in London rose 32% quarter-on-quarter and 5% year-on-year to 10,800

The total value of these loans was £4bn, up 38% on the second quarter and 11% on the third quarter 2013, CML added.

Meanwhile, remortgage lending increased 8% by volume and 10% by value compared to the second quarter and on a year-on-year basis it was up 15% by volume and 25% by value.

“In London, as in the UK, the market has continued growth the past two quarters in both house purchase and remortgage activity," said Paul Smee, director general of the CML.

"The number of people buying their home in London is at levels not seen since 2007, but this is still only 60% of the numbers seen at the height of the market.

"Borrowers appear to be taking advantage of relatively favourable economic conditions and this could mean a continual upward trajectory moving into the new year.”