Consumer appetite strong in London as first-time buyer activity remains stable

Half of all adults surveyed in London would like to buy a new home to live in (be that a first or subsequent home) in the next 2-3 years, according to findings released by the Council of Mortgage Lenders based on a survey undertaken by YouGov.

In the longer term, 75% of adults currently living in London would like to own their own home in 10 years time, a slightly lower proportion than in Great Britain overall where 79% of individuals indicated a longer term preference for home ownership.

In line with these consumer trends, first-time buyer activity was similar to the first quarter of 2012, while homemover lending and remortgaging was down, according to separate data released by the CML.

Commenting on the data, CML director general Paul Smee said: "These figures show that higher house prices and tougher affordability constraints in London have not had a significant impact on consumer appetite to buy or move home in the capital."

A similar percentage of those who live in London want to be home-owners despite differences in demographics and population flows.

Lending activity in London was largely similar to the same period last year, a positive picture bearing in mind the significant boost to the market caused by the end of the stamp duty holiday in March last year.