Scottish Q1 first-time buyer activity down 10 per cent year-on-year

Scottish home buyers borrowed £1.8 billion for house purchase in the the first three months of this year, down 15 per cent quarter-on-quarter and five per cent year-on-year.

They took out 14,300 loans, down 14 per cent compared to the previous quarter and six per cent on the first quarter 2016, according to latest data from the Council for Mortgage Lenders.

First-time buyers borrowed £810 million, down 10 per cent on the fourth quarter but up 25 per cent on the first quarter last year. This totalled 7,600 loans, down 8 per cent quarter-on-quarter but up 23 per cent year-on-year.

Home movers, meanwhile, borrowed £1 billion, down 19 per cent quarter-on-quarter and six per cent compared to a year ago. This totalled 6,700 loans, down 19 per cent quarter-on-quarter and 8 per cent compared to the same quarter in 2016.

Remortgage activity totalled £940 million, up nine per cent on the fourth quarter and 21 per cent on the same quarter last year. This came to 7,900 loans, up 11 per cent quarter-on-quarter and 23 per cent compared to a year ago.

Carol Anderson, CML Scotland chair, said: “There tends to be a seasonal lull in lending in the first quarter of the year, and this year is no exception. Even so, competitive mortgage rates have spurred on a resurgence in remortgage activity which was at a five year quarterly high in Scotland. First-time buyer lending also showed an increase on the first quarter of last year.

“The decline in home mover activity is not unexpected given the surge in activity last year to avoid the changes in Land and Buildings Transaction Tax, but we expect home buying activity to gain momentum into the summer months.”