Research from the CML shows the number of London home buyers has increased since the Brexit vote with affordability remaining unchanged.
The Council of Mortgage Lenders (CML) report shows an 11.6% increase in the third quarter for the number of house purchases including first time buyers and home movers.
In the third quarter of 2016 there were 19,200 mortgages loans advanced to home buyers compared to 17,200 for the previous quarter.
House purchases by value in the third quarter was £6.2 billion, an increase of 14.8% compared to the second quarter figure of £5.4 billion.
If you include remortgage buyers
, the figure was higher by 7.6% or 33,700 mortgage loans for the third quarter with a value of £10.6 billion compared to 31,300 for the previous quarter valued at £9.6 billion.
Affordability remains unchanged
For first time buyers
the affordability figures remain relatively unchanged with the typical mortgage loan up slightly for the third quarter at £260,000 (where the UK average is £134,900) compared to £259,000 the previous quarter.
Total household income for London borrowers was up slightly at £64,700 (the UK average is £40,500) compared to the previous quarter at £64,500.
The income multiple to the mortgage loan increased from 3.98 to 4.02 (the UK average is 3.54) and the loan to value (LTV) remains the same at 75% with deposits of 25%.
For home movers
the average mortgage loan has increased from £324,300 to £336,300 (£172,800 was the UK average).
Household income decreased to £87,500 (this is £55,200 on average in the UK) from £84,800 and typical income multiples have decreased slightly from 3.98 to 3.97 (3.27 was the UK average).
Loan to values for home movers is 65% and equity is 35% and the average age of home owners is 37 years of age.
Figures lower over the year
Paul Smee, director general of the CML said the number of loans for house purchase and remortgages has increased but the number of first time buyers and home movers has decreased when compared to the same period in 2015.
This is the first quarterly data after the EU referendum but it is unlikely to be very reliable as an early indicator of how the market in London will be affected, says Mr Smee.
The number of mortgage loans advanced in the third quarter 2015 were 22,900 and are -16.1% lower in the third quarter this year at 19,200 with home movers particularly hard hit reducing -24.8% over this period.
Figures are also lower for the third quarter in terms of value with first time buyers less by -4.6% compared to last year and home movers less by -21.9% both at £3.1 billion.
Mr Smee said, it does not appear that there will be a drastic change in activity for the foreseeable future in a London market which has been stable for several years.
For older homeowners there is significantly higher activity with equity release buyers
in London accessing wealth in their property with a lifetime mortgage to help maintain their standard of living as costs rise.
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