First-time buyer numbers were up 8 per cent in December and 30 per cent year-on-year, according to the latest First Time Buyer Opinion Barometer from LSL Property Services.
It found that there were 29,100 first-time buyer transactions in December 2013, the highest figure since October 2007.
More first-time buyers were attracted to the market as banks increased lending to borrowers with smaller deposits. The average deposit for a first-time buyer fell to £26,533 in December, 3.6 per cent lower than a year before.
But despite falling deposits, first-timers are being forced to take out larger mortgages. The average mortgage climbed 11.4 per cent over 2013 to reach £122,040 in December, as house prices continued to climb and the average first-timer purchase price hit £148,573.
|
Transactions |
Average Purchase Price (£) |
Average Deposit |
Average Mortgage |
|
|
December 2013 |
29,100 |
£148,573 |
£26,533 |
£122,040 |
|
November 2013 |
27,000 |
£146,141 |
£27,787 |
£118,354 |
|
1 month change |
+7.7% |
+1.7% |
-4.5% |
+3.1% |
|
3 month change |
+10.0% |
+1.0% |
-6.8% |
+2.9% |
|
1 year change |
+30.0% |
+8.4% |
-3.6% |
+11.4% |
David Newnes, director of LSL Property Services, owners of estate agents Your Move and Reeds Rains, said: “First-time buyers are returning to the market in their droves, as the property market emerges fully from the shadow of the financial crisis. There is a greater array of deals on offer to buyers with just a small deposit saved, and schemes like Help to Buy are providing vital support to help new buyers access the very best rates. As with the entire market, prices are quickly climbing upwards, but lower rates mean that mortgage repayments are still affordable, despite new buyers having to purchase property with a higher price tag.”
Nine out of ten first-time buyers (92 per cent) are now aware of the Government’s Help to Buy Scheme, with 7 per cent of recent buyers using the scheme in order to help them get on the ladder.
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