Mortgage lenders supported 84,900 first-time buyers (FTBs) get onto the housing ladder in the North of England in 2018, up 3 per cent when compared to the previous year and the highest level since 2006, figures published today revealed.

The latest analysis from UK Finance found that, overall, the North of England saw greater growth in FTBs than anywhere else in England outside of the Midlands which, according to the body, reflected better affordability in northern regions. Parts of the north reported lower average deposits and income multiples when compared to the rest of England, particularly in London and other English cities.

The figures also show there were 80,400 homemovers in the North of England in 2018, an increase of 1.1 per cent on the previous year and the highest level since 2007. This contrasts with an overall decline in homemovers across the UK in 2018, the association highlighted.

Furthermore, the largest Northern cities, Newcastle, Liverpool and Hull all saw strong growth in buy-to-let (BTL) lending, opposing the national trend. This has been driven by lower house prices coupled with a healthy labour market and strong rental demand, resulting in landlords able to achieve higher yields than the UK average.

UK Finance reported that Hull saw particularly strong growth of 12.8 per cent in BTL lending, along with a steady increase in FTBs and homemovers.

Commenting on the figures, UK Finance director of mortgages Jackie Bennett said: “These figures show the North of England has a strong and dynamic mortgage market, with lenders helping thousands of FTBs onto the housing ladder.

“This has been combined with a steady increase in homemovers, making it easier for buyers to find a property that suits their needs.

“Meanwhile, attractive rental yields in many Northern cities have driven growth in BTL 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.”

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