According to the latest official statistics, there are approximately 20% more house purchase approvals in September 2015 compared to last year. This is actually the highest level of house purchase approval since January 2014 when the support for mortgage lending through the Funding for Lending Scheme from the Bank of England was stopped. In addition, small deposit lending has reached record high levels in the past 7 years.
When we compare the number of house purchase approvals in September with August, we will notice that there is a small progress (2% more). This means that this trend is not something unusual or sudden. The progress is going on gradually since the beginning of this year.
These numbers appear to confirm that the UK housing market is stabilizing and getting stronger. Investors are more confident in the market and the negative effects of the financial crisis are all but over. The implementation of the new laws and regulations have brought positive changes and what is even better, these changes are not volatile, but steady and encouraging.
The small deposit lending has improved too. This is a situation that goes in favour of first-time buyers. That’s why there was an increase of 25% in first-time buyer sales in August compared to May this year. When it comes to small-deposit borrowers and first-time buyers, Yorkshire seems to be the ideal region for this category of people. South Wales and South East and South England are also becoming very popular among small-deposit borrowers.
Overall, September was a successful month for people who were looking to purchase a home with the help of a smaller deposit so it will be interesting to see if this trend continues over the forthcoming months.