First-time buyer (FTB) numbers increased 75.7 per cent annually in the UK in August and more than doubled in London, up 102.4 per cent, according to haart’s national housing market monitor.
The mortgage data, provided by Just Mortgages, also found that, nationally, FTBs represented 42.2 per cent of all mortgages, a 7.6 per cent increase on August 2012 and are an average age of 32.1 years.
It found that FTBs paid a 3 per cent lower deposit than last year (£34,997), while the number of new properties coming onto the market was still down 0.8 per cent nationally and down 9.9 per cent in London.
Paul Smith, CEO of haart, with a network of over 100 branches, comments: “First-time buyers are back on the scene – this is the best they have had it since the economic crash. Their registrations are up 75.7 per cent annually across the UK and have more than doubled in London.
“This is in part due to the back-log of people who decided to rent over the last five years rather than buy, but are now benefiting from improved lending conditions. The deposits they are putting together are more affordable, down 3 per cent annually and first-time buyers have not been younger since last year. The second phase of the Help to Buy scheme in January 2014 (mortgage guarantee) will place the aspiration of home ownership within the reach of many more.
“Second steppers will also benefit from this tsunami of first-time buyer demand as their properties will be snapped up in record time and our branches are currently achieving 98.9 per cent of asking prices. Potential sellers should recognise these perfect conditions.
“The underlying ‘property bubble’ niggle remains, though the distinct difference this time is that lending is more responsible. It is highly unlikely that we will see a return to the 100 per cent LTV mortgage and extreme sub-prime market.”
Loading ...