Both house prices and mortgage lending rose in 2016, demonstrating the resilience of the UK property market.
Figures released by the Office for National Statistics (ONS) on February 14 revealed an average increase of 7.2 percent in house prices in the year to December 2016.
On the same day, the Council for Mortgage Lenders (CML) revealed that lending was also up by 7 percent, with first-time buyer activity particularly robust.
An analysis of the property market by the Bank of England confirmed the ONS figures showing London’s property market, particularly in values above £1million, has slowed, but other areas of the UK, in particular, the east and south-east of England, are continuing to rise.
First-time buyers boost mortgage lending
The ONS statistics have gathered together figures from the Land Registry, Land and Property Services Northern Ireland and the Registers of Scotland to reveal that the average price of a UK property is now £220,000 – that’s up £15,000 on December 2015 and £3,000 more than the November 2016 value.
Meanwhile, the CML’s figures show that homeowners borrowed a total of £11.6billion in December 2016, up 5 percent on November’s lending and a 3 percent increase on December 2015.
First-time buyers accounted for £5.1bn of that total, a rise of 9 percent in November and 13 percent more than in December 2015.
In the remortgage market, activity was down 21 percent in December 2016 compared to the previous month but up 7 percent in December 2015.
Paul Smee, the CML’s director general, described the mortgage market as “resilient and adaptable” in the face of what could have been “a potentially destabilising year of regulatory and political change”.
Finding the right support to buy
The figures across the property market suggest growth will remain, making this an ideal time to consider buying. One vital part of the buying process is having a survey done, and at Surveyors Local, all the surveyors we work with are regulated with the Royal Institute for Chartered Surveyors (RISC), fully qualified and reputable.