The Council of Mortgage Lenders (CML) have released their latest data regarding UK mortgage lending for January 2015. Do conveyancers have reason to be cautious in the run up to the Election?
These latest figures show both first time buyer and home mover lending declined by around a quarter compared to December 2014. The CML state first time buyer figures are at their lowest levels in nearly two years, but this is one of the strongest Januarys in terms of volume and value, since 2007.
Stricter borrowing terms are said to be making it more difficult for prospective borrowers, according to Director General of the CML, Paul Smee. However he assures transaction levels are expected to pick up within the next few months.
Remortgage and buy-to-let markets remain strong, both seeing an increase in transactions month-on-month. The value of remortgage lending, according to the report, is the second highest January level since 2009.
Many of the lending figures across the board, however, are down compared to the same time last year – what could be the reason for this?
Richard Sexton, director of e.surv chartered surveyors, comments: “The looming General Election appears to be casting a shadow over the housing market. This is not down to supply. Conditions for home-movers are actually very positive, with record low mortgage rates on offer, a recovering jobs market, and more lending to borrowers with smaller deposits. In fact, February saw the largest proportion of high LTV borrowers in the market in five months, meaning financial support for first-time buyers is getting far better. But this willingness to lend by banks hasn’t been matched by consumers’ willingness to borrow.
“The temporary election caution should lift soon – it is largely unfounded – as borrowers look to take advantage of the winning composition of improving economic factors and accessibility of mortgages – before prices rise any higher. All the elements are in place for a sustained lending recovery. Now is just a matter of waiting for consumer confidence to catch up.”
In terms of conveyancing transactions, do your firm’s levels reflect these latest lending statistics? Are you seeing a decline or are you experiencing any noticeable effects of the Election?
