This compares to a drop of 4% UK-wide
In the last quarter of the year 2,200 first-time buyers in Wales took out mortgages, down from 2,300 in the previous quarter but the same as in the final quarter of 2010.
On average those in Wales borrowed more of their property’s value than first-time buyers in the UK as a whole at 83% loan to value compared to 80% LTV. They also spent slightly less of their salary on mortgage interest payments at 12.0% compared with 12.3%.
Overall, 6,000 loans for house purchase were taken out in Wales in the fourth quarter of 2011, a 3% fall from the previous quarter and from the last quarter of 2010.
By value, those purchasing houses borrowed £650m, down 3% from the third quarter but no change from the previous year.
In the UK as a whole, the number of loans for house purchase in the last quarter of the year dropped 5% from the third quarter but increased 1% from the final quarter of 2010.
For 2011 as a whole, the number of house purchase loans in Wales declined 4% to 22,000, a smaller fall than in the UK where there was a 6% drop.
Remortgaging in Wales in 2011 increased by 14% to 17,900. In the UK as a whole, remortgaging numbers increased by 18%.
In the last quarter of the year, remortgaging in Wales decreased 10% by number and 7% by value from the previous quarter but up 2% by number and 5% in value from the same period a year earlier.
The last quarter of 2011 saw remortgaging in the UK decline 9% by number and 8% by value from the third quarter but increase 8% by number and 11% by value from the previous year.
Over 2011 as a whole Wales accounted for 4% of the total UK house purchase market, unchanged from 2010 and 5% of all UK remortgaging.
Peter Hughes, chairman of CML Cymru, said: “In our first look at the mortgage market in Wales, it is particularly encouraging to see a positive picture emerging for first-time buyers.
“They have been at the sharp end of a dysfunctional mortgage market but in contrast to the UK, Wales has seen a continuing uplift in activity at this end of the market – albeit from a relatively low base.
“Wales has long suffered from a shortage of housing. Demand has outstripped supply across many areas and low activity volumes, half of where they stood in 2006, as a result of the financial crisis have since added to this problem.
“The situation calls for imaginative solutions and the Welsh government and its partners have been actively seeking ways to encourage greater activity in the housing market.
“We may see a flow of first-time buyers to the market continue in the coming months of this year as this group of would-be borrowers look to take advantage of the stamp duty concession before its termination in March.
“The overall picture for the Welsh mortgage market remains consistent with the UK as a whole with the country still facing a unique set of challenges from so many different fronts.”
