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UK mortgage lending data published according to post codes for the first time

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Major mortgage lenders in the UK have today published details for the first time of their total outstanding residential mortgage lending according to over 9,000 post code sectors across the country.

The data includes most buy to let lending as well as home owner lending worth around £855 billion and is compiled by the Council of Mortgage Lenders, covers Barclays, HSBC, Lloyds Banking Group, Nationwide Building Society, Santander UK, RBS, and Clydesdale and Yorkshire Bank, who together represent about 73% of the total mortgage market.

These lenders are also publishing their own lending data by postcode on an individual basis and the British Bankers' Association is simultaneously publishing a similar breakdown of SME lending and personal loans.

Out of the 10,834 sector postcodes in Great Britain data is being published on 9,030 sector postcodes. In addition, there are 1,770 sector postcodes where, according to 2011 Census results, nobody lives and there are 32 sector postcodes where people do live and where participating lenders have mortgages, but aggregate data cannot be reported because it might compromise individuals' data privacy.

There are just two sectors where people live but where participating lenders do not have mortgages. However, 2011 census data suggests that in both localities there were households with mortgages, which could well be provided by non-participating lenders.

The CML says that when interpreting these detailed figures, it is important to bear in mind that this postcode reporting exercise initially only covers lenders accounting for around three quarters of the overall mortgage market. With more than 100 active lenders, the mortgage market is fiercely competitive, and this means that local markets may display different market share characteristics.

The detailed local statistics at sector postcode level provide for the maximum transparency possible without compromising data privacy. However, interpreting them is less straightforward, especially given the significant variation in such factors as house price values, population size and tenure patterns at a local level.

So the CML is also supplying higher level postal area data covering the 120 postal areas of Great Britain. ‘On this basis, we are able to report £891 billion of mortgage lending by the participating lenders, since we are able to include some of the lending that had to be excluded for data privacy purposes from the more detailed sector breakdown, as well as some lending that could not be attributed to a specific sector postcode,’ explained CML director general Paul Smee.

‘As you would expect, strong levels of mortgage lending are broadly correlated with those areas where there is a strong resident population. While the dataset covers only three quarters of the mortgage lending market, it certainly shows that there are reassuringly few surprises in the postcode distribution of mortgage lending,’ he added.

Lenders have taken care to strike a balance between the desire for transparency and the need to protect customer confidentiality. To protect the privacy of business and personal customers, a set of parameters were agreed with the government to ensure customer confidentiality is protected…

Property prices in England and Wales up 0.7% in June as price growth slows

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House prices in England and Wales have seen their highest annual rise in four years, but the rate of growth is slowing, according to the latest monthly index figures to be published.

Average house prices climbed £23,443 or 9.6% in the past year and even if London is excluded then it is still a substantial rise of 5.2%, according to the LSL/Acadata index.

On a monthly basis property prices increased by 0.7% in June, and just 0.1% if London and the South East is excluded.
The data also shows that London house prices are up 15.6% annually, but prices are falling in Westminster and the City.
The recovery has been strengthened by first time buyers with new peak prices set in South East and East Anglia.

David Newnes, director of Reeds Rains and Your Move estate agents, owned by LSL Property Services, said that 12 months of solid house price increases have driven up average property values by a total of £23,443, setting a new record high of £268,637.

‘But if you exclude London and the South East from the picture, average house prices across England and Wales have risen a far more sustainable 5.2% over the last year. There are also new signs that growth is beginning to slow as we move into summer, and following the changes brought about by the Mortgage Market Review implemented at the end of April,’ he explained.

He also pointed out that the 0.7% monthly change witnessed in June, amounting to £1,900, is below the average 0.8% increase per month recorded over the last year, as house price inflation starts to moderate. And if you remove London and the South East from the equation, house prices are up only 0.1% in the month to June.

‘With new affordability regulations and stress tests tightening mortgage approvals, the Help to Buy scheme remains a crucial link in bolstering first time buyer demand and fuelling activity outside of London,’ said Newnes.

‘Flats, the typical property type of first time buyers making their first step onto the property ladder, have seen the biggest boost in sales across the country. During March to May 2014, sales were up 37% on the same period last year,’ he explained.

‘The Help to Buy scheme may not be making a difference in London, where prices often exceed the upper eligibility limit, but it is a vital aid for aspiring homebuyers in parts of the country where prices are still regaining ground lost during the recession. Places like Lancashire and York are still experiencing annual growth below 1%,’ he added.

The index report says that the housing market recovery continues to seep across the country beyond the capital. In fact, as Londoners migrate out of the city in search of more affordable homes in the surrounding regions, average prices in the South East and East Anglia have been pushed to new peaks in May.

‘Consumer confidence is travelling further afield still, and house price records have also been set in Cambridgeshire, Northamptonshire and…