Commentary on CML lending and the ONS house price index for May
Andy Knee, chief executive of LMS, comments on CML lending and the ONS house price index for May
“May offered some respite to first-time buyers. Prices paid by existing homeowners increased by almost 6% year-on-year; on the other hand, the first-time buyer market saw a slightly smaller increase of 5.1%. A rise in the average income of first-time buyers, as reported by the CML, is a further boost to their prospects as we enter the summer season.
“However, the number and value of first-time buyer loans is down from May of last year, an indication that more still needs to be done to support prospective homeowners. Increased supply and more affordable housing also remain critical to ensuring stability within the market.
“While remortgaging as a whole is down from last month, it still accounts for more than half of activity in the buy-to-let sector. We may see an upward trend here in the future as landlords look to mitigate the reduction in interest tax relief following the Emergency Budget. By remortgaging, buy-to-let landlords can ensure they have the best deals on the properties in their portfolio.”