The latest figures released by the Council of Mortgage Lenders (CML) show that the UK mortgage market is continuing to perform well across both town and country areas. The CML is a trade association representing mortgage lenders in the UK, and their latest data covers the period from January to March 2021.
Town Performance
The CML figures show that lending in towns and cities in the UK was up by 9% compared to the same period in 2020. This is a positive sign for the property market, as it suggests that people are feeling confident about buying homes in urban areas despite the ongoing pandemic.
The data also reveals that first-time buyers continue to be a driving force in the town property market, with lending to this group up by 24% year-on-year. This is likely due to a combination of factors, including the government’s Help to Buy scheme, low interest rates, and a desire for more space as people spend more time at home.
The CML figures also show that remortgaging activity in towns and cities was up by 14% year-on-year. This could be because people are taking advantage of low interest rates to switch to a better deal or release equity from their homes.
Country Performance
The CML data also reveals that lending in rural areas was up by 11% compared to the same period in 2020. This is a particularly strong performance given the challenges that many rural areas have faced during the pandemic.
The figures show that first-time buyer lending in rural areas was up by 24% year-on-year, which is a similar trend to that seen in towns and cities. However, there was also a significant increase in lending to home movers in rural areas, up by 15% year-on-year. This suggests that people are choosing to move to the countryside for a better quality of life and more space.
Remortgaging activity in rural areas was also up by 15% year-on-year, which is a positive sign for homeowners in these areas who may be looking to take advantage of low interest rates or release equity from their homes.
Conclusion
The CML figures paint a positive picture of the UK mortgage market, with both town and country areas performing well. First-time buyers continue to be a driving force in the market, and there has also been strong growth in lending to home movers and remortgaging activity.
This is good news for the property market as a whole, and suggests that people are still keen to buy and move home despite the ongoing pandemic. Low interest rates and government schemes such as Help to Buy are likely to be contributing factors, and it will be interesting to see how the market continues to perform in the coming months.