Mortgage lenders state that the housing market is ‘moving sideways’

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According to the Council of Mortgage Lenders (CML), the UK housing market in 2017 is ‘moving sideways’. This is because there has been a drop in borrowing of 11% on the figure for March.

This sizeable drop in demand for loans in April could be due to an annual fall during springtime, and the amount borrowed in April this year was still 4% higher than in April 2016.

However, there are still factors that lead industry experts to believe that that there is a slowdown in the housing market. For example, it has been reported that HM Revenue and Customers reported a 22.5% fall in property transactions in April, compared to March.

This could be attributed to the fact that landlords will have brought forward purchases to avoid the tax changes that were brought in on April 1st 2017 whereby the amount of tax relief landlords could claim on mortgage payments was reduced.

In addition, the CML also stated that the number of first-time buyers taking out mortgages had overtaken the number of people moving house for the first time in over 20 years. So whilst the number of home movers and landlords taking out mortgages is falling, the number of first-time buyers is rising and they are therefore ‘buoying the market’.

To find out more about the property market in your area, and for sound and impartial advice from a mortgage advisor talk to us at Derngate Wealth. We provide expert advice on the most suitable mortgage for you.

Your home may be repossessed if you do not keep up repayments on your mortgage.

The Financial Conduct Authority does not regulate on buy to let mortgages.

May 31, 2017Danny PerryBlog

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