New CML data on the characteristics of lending in Scotland in the fourth quarter of 2014 show a decline quarter-on-quarter and year-on-year in house purchase but an increase in first-time buyers compared to the fourth quarter of 2013.

Double Glazing

New CML data on the characteristics of lending in Scotland in the fourth quarter of 2014 show a decline quarter-on-quarter and year-on-year in house purchase but an increase in first-time buyers compared to the fourth quarter of 2013.

CML Gross Mortgage Lending

In the fourth quarter of 2014:

  • There were 7,000 First-time buyer loans in Scotland, worth £750m. This was down compared to the third quarter 5% by value and 4% by volume. Compared to the fourth quarter of 2013, the number of loans increased by 3% and the amount borrowed by 9%.
  • There were 8,000 loans to home movers, valued at, £1.2bn. This was down 8% in volume and down 9% in value compared to the third quarter. Compared to the fourth quarter of 2013, there was a decrease of 8% in volume and a decrease of 5% in value.
  • The total number of remortgage loans declined in the fourth quarter to 5,700 loans (£650m), which was down 3% in volume but unchanged in value on the third quarter. Compared to the fourth quarter of 2013, activity was down 17% in volume and 13% in value.

In 2014 as a whole:

  • Scotland accounted for 6.6% of UK-wide annual house purchase acitvity, down from 6.9% in 2013
  • Lenders advanced 27,700 loans  to first-time buyers in Scotland totalling £2.9bn. This was 16% up in volume compared to 2013, and 23% up in value.
  • Home movers in Scotland took out 31,800 loans, 5% more than in 2013. The value of these loans was £4.6bn, up 10%.
  • There were 23,400 loans advanced for remortgage in 2014 totalling £2.6bn. This was 14% down by volume compared to 2013, and 9% down by value.

Linda Docherty, chair of CML Scotland, commented:

“More people bought a home in Scotland last year than in any year since 2008, with a pronounced increase in first-time buyer activity in particular. As in the UK overall, there was a quarter-on-quarter dip in activity in the final quarter of the year. However, with inflation being low, employment increasing  and there being signs of growth in household income we believe there are grounds for optimism for continuing growth, albeit at a likely slower rate.

“The introduction in Scotland of Land and Buildings Transaction Tax, replacing stamp duty from April, should help provide a boost to the housing market, which could see half of new borrowers paying no tax when purchasing a home.”