UK Finance also revealed that the average first-time buyer in the capital is 32 and has an income of £66,000.
There were 7,700 new home mover mortgages completed in London in the fourth quarter of 2017, some 8.5 per cent more than in the same quarter of 2016. The £3.07bn of new lending in the quarter was 12.5 per cent more year-on-year. The average home mover in the capital is 37 and has an income of £89,000.
There were 14,500 new homeowner remortgages in London completed in the fourth quarter, some 9.8 per cent more than in the same quarter a year earlier. The £4.41bn of remortgaging in the fourth quarter was 16.4 per cent more year-on-year.
Jackie Bennett, Director of Mortgages at UK Finance, had this to say: “London’s mortgage market remains competitive, with strong growth in the number of home movers and remortgaging reaching an eight-year high.
However, subdued growth in the number of first-time buyers shows that affordability remains a challenge in the capital. Help to Buy can support first-time buyers when purchasing new build homes, and it will be important for the government to clarify its plans for the future of this scheme well before it ends in 2021.”
Jeremy Leaf, former RCS residential chairman, says: "Disappointingly, it seems that first-time buyers are not taking full advantage of their improved competitiveness over landlords who are struggling with tax and regulatory changes, particularly when it comes to the small flat and house end of the market.
In our branches, we are finding much more interest from first-time buyers than these figures suggest. Their importance can’t be overstated as first-time buyers are the lifeblood of the housing market. However, what may be needed is more encouragement to persuade them to buy and make a more significant difference to the numbers who are able to do so, as many still have worried about affordability.
It is no surprise that remortgaging numbers are so strong with mortgage rates at record lows and concerns about the possibility of a rate rise - which came in November - and the chance of another in coming months."