Affordability and attractive rental yields boosts the mortgage market in the North

The mortgage industry has helped 85,000 households in the North of England buy their first home in 2018, the highest number since 2006, according to new figures.

There has been a steady growth in home movers across the region, in contrast to overall decline across UK and attractive rental yields in Northern Powerhouse cities has driven a growth in buy to let lending, again bucking the national trend.

The figures from UK Finance also shows that overall, the North of England saw greater growth in first time buyers than anywhere else in England outside the Midlands and its analysis report says that this reflects better affordability in regions of the North, with average deposits and income multiples lower than elsewhere in England, particularly London and other English cities.

The figures reveal that there were 80,400 home movers in the North of England in 2018, an increase of 1.1% on the previous year and the highest level since 2007. This contrasts with an overall decline in home movers across the UK in 2018.

Meanwhile, the Northern Powerhouse cities of Newcastle, Liverpool and Hull all saw strong growth in buy to let lending, bucking the national trend. This has been driven by lower house prices coupled with a healthy labour market and strong rental demand, meaning that landlords can achieve higher yields than the UK average.

Hull saw particularly strong growth of 12.8% in buy to let lending, along with a steady increase in first time buyers and home movers.

‘These figures show the North of England has a strong and dynamic mortgage market, with lenders helping thousands of first time buyers onto the housing ladder. This has been combined with a steady increase in home movers, making it easier for buyers to find a property that suits their needs,’ said Jackie Bennett, director of mortgages at UK Finance.

‘Meanwhile, attractive rental yields in many Northern cities have driven growth in buy to let lending, bucking the national trend. The mortgage industry stands ready to work with the UK government and local authorities to capitalise on these strengths and help deliver on the full economic potential of the Northern Powerhouse,’ she added.