The data also shows there has been an increase in lending to first time buyers, home movers and remortgagors that has continued the upward trend in Northern Ireland over the last two quarters.
A total of 2,800 loans worth £240 million were advanced to home owners for house purchase in Northern Ireland in the third quarter of 2013. This represented an increase of 22% compared to both the previous quarter and the third quarter of 2012.
A total of 1,600 loans were advanced to first-time buyers in the third quarter of 2013. This was an increase compared to the second quarter of 14% and up 23% compared to the third quarter last year.
Loans to first time buyers had a total value of £120 million up from £110 million advanced in quarter two and up 20% compared to quarter three last year.
First time buyers borrowed, on average, £70,000 this quarter, a slight dip from £71,050 last quarter. The amount borrowed by first time buyers relative to their income was 2.76 times their income compared to 2.81 times the last quarter but this still remains much lower than the UK average of 3.36.
The majority of first time buyers in Northern Ireland, 75% compared to the 40% UK average, bought properties valued at less than £125,000, and therefore would have avoided paying any stamp duty. This proportion is considerably higher than the 7% of first time buyers in Northern Ireland who were exempt from stamp duty in the third quarter of 2007.
There has been a return to growth in home mover lending, with 1,100 loans advanced in the third quarter, up from 900 in the second quarter of 2013 and up from 1,000 in quarter three of 2012. The total value of loans to home movers was £120 million in the third quarter, an increase from £90 million in quarter two of 2013 and larger than the £110 million advanced in the third quarter last year.
Despite the increase in lending, home movers in Northern Ireland still only accounted for 39% of the house purchase market in quarter two which is lower than the 55% UK average.
Lending for remortgages picked up a little in the third quarter in Northern Ireland, with £110 million advanced to borrowers, up 10% compared to the second quarter of the year and the third quarter last year.
‘Higher lending across all borrower types is a positive sign that the recent stability we have seen in the market is helping to increase activity,’ said Brian McCormick, chair of the CML in Northern Ireland.
‘First time buyers have been a key driver in the first half of the year, and still continue on an upward trajectory. But, crucially, we have seen a pick up in the previously stagnated home mover and remortgage sectors, which is a good sign going forward,’ he added.
