First-time home buying in the U.K. ticked up in October, as mortgage approvals to such buyers grew 2.8% year-over-year, according to a report Tuesday from banking body UK Finance.
In total, home loans to first-timers totaled 32,260 in October, accounting for roughly half of all new mortgages to buy a home, according to UK Finance, a trade organization that represents some 250 high street banks. By contrast, homemovers completed 33,370 mortgages in October, a significant 4.2% rise from last year.
More: Mansion Tax May Be Headed to Boston Next
As expected, homemovers were the bigger spenders on real estate, borrowing nearly one-third more than first-time home buyers.
Those stepping onto the housing ladder for the first time took out an average loan of £174,133 (US$228,532) in October, a 21% increase from a year ago. By comparison, movers borrowed an average £228,162, also about 20% more than October 2018.
Mortgage data is regarded as a weathervane for future sales activity as homebuyers secure a loan in advance of a purchase.
Thursday’s election result, which saw Prime Minister Boris Johnson secure a strong Conservative majority in Parliament, is expected to bode well for the U.K. property market. It ends months of political uncertainty surrounding the general election and the fate of Britain’s exit from the European Union.
From Penta: Fabrizio Moretti of The Strokes Puts a New Spin on Old Master Works
Shaun Church, director at mortgage lender Private Finance, said the election results are likely to release pent-up demand in the coming months, particularly with borrowing costs at near-record lows.
“Many sellers and buyers that have sat on their hands for the past couple of years will now be galvanized to pursue their home-moving ambitions,” Mr. Church said. “Easing house prices should also inspire prospective buyers to make a purchase.”