Date Published 13 July 2012
The slump in activity that followed the end of the first-time buyer stamp duty holiday appears to have been short-lived as house purchase lending increased substantially in May, according to new statistics by the Council of Mortgage Lenders.
In May, house purchase lending increased by 36% compared to April and 29% compared to last May. The number of loans also increased, by 33% from April and by 24% from a year ago.
First-time buyer activity bounced back following the volatility of March and April. 18,100 loans, worth £2.3 billion, were advanced to first-time buyers in May, up from 12,700, worth £1.5 billion, in April. This may be a 43% rise (53% by value) from April but, following the distorting effects of the end of the stamp duty concession, this returns first-time buyer lending back to a similar level seen in the second half of 2011.
Lending to home movers also increased with 30,200 loans taken out, worth £4.9 billion. This was up 29% by number and value compared to April and up 25% (29% by value) from May 2011.
Karen Marshall Independent Financial Adviser at Lesters commented:
"It is positive news for the market that the slump following the end of the stamp duty concession seems to have been short-lived. Lending is similar to late 2011 levels and showing a healthy improvement on the same time last year.
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