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The proportion of mortgage loans in the UK for the first time reached a record record at the end of last year, as the purchase of property has become cheaper than renting, and more renters have left the market.
The people who joined the property ladder made up 29.6 percent of all mortgage borrowings in the last quarter of 2024, according to the data they published Bank of England Tuesday.
It all increased by 1.9 percentage points from the same period in 2023 and the highest share since the data collection began in 2007.
The share of borrowings for the purpose of buying the purpose for the purpose was 8.2 percent, which is more than a record low of 7 percent registered in the last three months of 2023.
The rest of the borrowing market consists of people who are already on the relocation of the property ladder, and those remortgaging, whose combined stake has been slowly decreasing in the last two decades.
Richard Donnell, CEO of Consultacy Houseful, said the figures have reflected the rent that has been growing faster than the prices of houses in the last two years, as well as the fall in the mortgage rate since 2023.
“Now buying is cheaper [than renting] Throughout the UK, this supports the request for customers who first, “he said.” The bigger sale of renters also supports this trend because they usually sell what customers want in the first years. ”
Assets platform Zoipla said on March on Mary’s first customers in February, £ 1,038 per month, 20 percent lower than an average monthly rent of 1,248 pounds in the UK, as the growth price of houses stopped and the rent progressed forward.
Average private rent in the UK jumped 8.7 percent in 12 months to January 2025, according to official data published last month, which is almost twice as long as 4.6 percent of the Great Britain’s price increase in December 2024.
Simon Gammon, a management partner in Knight Frank Finance’s mortgage broker, said lenders offer longer contracts or alleviate accessibility tests to allow larger potential customers to enter the real estate ladder.
“It happened as the rates were mitigated and accessibility improved ..[and]Increasing rent to customers gave a real sense of urgency, “he said.
“The double -digit increase in the rent made ownership of the house a much more attractive option,” despite some volatility in recent years on the mortgage market, he added.
Pictures of BOE also showed that the share of mortgage was in the backward backlogs at the end of last year, after growing up from 2022. In response to larger interest rates.
The mortgage share behind was 1.3 percent in the last quarter of 2024, unchanged from the previous three months.
Analysts have said that almost record low borrowings are for the purpose of buying outputs to the market for the market than the higher costs of borrowing and taxes and more regulations.
Gammon said that firmer rules on energy performance certificates, which rank the energy efficiency of real estate, as well as “Volatility of the Mortality rate and uncertainty in relation to the Government’s daily row of policies, all coincided with the squeezed purchase market.”
“For many [landlords]The profit margins offered are not adequate to the risks, “he added.
