I was Interested to read a report from the Council of Mortgage Lenders (CML) advising that the number of loans to first time buyers in October was up by 19% compared to October last year and up 14.3% on September’s figures which is a very positive sign. The CML report that the average loan-to-value (LTV) for first time buyers is 80% – this figure has remained the same for approximately two years. The most interesting stat in the CML report was that for the second consecutive month, loans to first time buyers accounted for 40% of all house purchases. I am not seeing those activity levels here yet but this is slightly weighted figure as it is a UK wide.
As I have written in many blogs you need 40% of purchasers to be first time buyers to have a healthy property market. This results in new capital being introduced to the property market and will be geared up by purchasers in the chain. This also replenishes capital that is removed by people coming out of the market at the other end of the chain.
More trends to follow!Lindsay Darroch Partner – Head of Property
The opinions expressed in this blog are of the author only and do not necessarily represent the opinions of Blackadders LLP.
Blackadders takes all reasonable steps to ensure that the content of this blog is accurate and up to date. The blog is not, however, intended as a substitute for seeking legal or other professional advice but rather as an informative guide to the services provided by Blackadders and topical legal developments. Blog users should always seek advice tailored to their specific situation. Consequently, Blackadders accepts no responsibility for any loss or damage suffered by anyone acting or failing to act on the basis of information contained on this blog. Downloading of material contained on this site is at the user’s own risk and all necessary virus checks must first be carried out by the user. Blackadders is not responsible for the material found on any web sites linked to this one and links to this site may only be made with Blackadders prior consent.
Blackadders owns the copyright in this blog and all material contained on it. The material on this blog may be downloaded for personal use only and must not be altered. Otherwise, Blackadders’ written consent is required before any material on this site is reproduced, copied or transmitted in any way.
Information passed to us via this blog is kept confidential and will not be disclosed to third parties except if authorised by you or required by law.
© Blackadders LLP 2020
Members of the Law Society of Scotland.
Blackadders Solicitors is a trading name of Blackadders LLP, a limited liability partnership, registered in Scotland No SO301600 whose registered office is 30 & 34 Reform Street, Dundee, DD1 1RJ. Reference to a ‘partner’ is to a member of Blackadders LLP.