First-time buyers secured more mortgages in June than at any other point since August 2007
First-time buyers boosted mortgage lending in June as tax changes designed to deter buy to let landlords took effect.
June mortgage lending was up by 29 per cent month-on-month, according to lending data from the Council of Mortgage Lenders (CML). Mortgage lending was up by 12 per cent compared to the same month last year.
First-time buyers led the way, borrowing £5.5bn, up 28 per cent as compared to May, and up 25 per cent on June 2015. More loans were given out to first-time buyers than at any other time since August 2007.
Paul Smee, director general of the CML, said "there is uncertainty" in the market currently and that "it will take more time and patience to understand how the market will evolve in the current environment."
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Jeremy Leaf, north London estate agent and former RICS residential chairman, said the figures show former chancellor George Osborne's intention to "level the playing field between first-time buyers and buy to let investors" with his stamp duty tax changes "has borne fruit".
Andrew McPhillips, chief economist at Yorkshire Building Society, said: "This strong month-on-month growth suggests that market activity normalised in June following a period of decreased activity cause by landlords moving their transactions forward to beat the new stamp duty rate.
"We expect lending to continue to grow on an annual basis, but at a less pronounced level now following the outcome of the EU referendum, which may cause some to wait until the dust settles before landing on the property ladder."
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Mark Harris, chief executive of mortgage broker SPF Private Clients, said: "June's lending figures show a robust market with a good representation of first-time buyers. Admittedly the figures are for the run-up to the referendum so it is too early to say what the impact that has had on the market.
"Buy to let lending fell considerably in the second quarter, which was entirely as expected with landlords bringing forward buying decisions to the first quarter of the year."