Homebuyer lending in London up 11%

London homebuyers borrowed £6.1bn and took out 18,000 loans in Q2 2017, a 6% increase in volume compared with Q1 2017 and up 8% on Q2 2016.

Paul Smee, head of mortgages at UK Finance, said: "Homebuying in the capital bounced back from the traditionally subdued beginning of the year, with both first-time buyer and home mover lending showing growth both on the first quarter of 2017 and on the same period a year ago.

“The housing market in Greater London has some unique characteristics compared to the rest of the UK – more first-time buyers, but lower overall levels of home ownership.

“Affordability and the supply of housing remain critical factors to manage for the London market if positive activity is to continue going forward."

First-time buyers borrowed £3.1bn, up 10% on Q1 2017, with the average buyer typically borrowing £137,700 in the UK overall and £268,100 in London.

The average household income in the UK was £40,800, while in London it was £66,900 (up from £64,300 in Q1 2017).

Remortgage activity totalled £3.9bn, down 10% on Q1 2017, while volume was down 12% to 12,800 loans.