30 Jul

Rise in first-time buyers

Rise in first-time buyers

There has been an increase in people stepping on to the property ladder, according to the latest research.

Data from LSL Property Services shows that during the first half of the year, there was a total of 146,000 new first-time buyers in the UK property market.

This is 30,000 more than seen in the same period in 2013 and could mean the government's Help to Buy scheme could be proving beneficial to those looking to buy property for the first time.

In June there was a total of 26,500 first-time buyer sales – up ten per cent compared to the same month last year. It was also the second month in a row that the figure has remained above 26,000.

Property prices for first-time buyers have remained relatively stable, with just a 1.4 per cent drop over the year, although the average mortgage increase by 2.9 per cent to £119,743. However, there has been a 17.8 per cent drop in deposit values as the first-time buyer market recovers.

David Brown, commercial director of LSL Property Services, said: "The bottom of the market continues to recover, even as activity further up the price bands is beginning to show signs of slowing down.

"Lenders have been more willing to lend to higher loan-to-value borrowers. Help to Buy has boosted confidence and with it demand among first-timers who have been carefully saving up for their deposit."

First-time buyers have seen a relatively positive time in recent months, with stable property prices and an increasing number of 95 per cent loan-to-value mortgages becoming more available to those stepping on the property ladder for the first-time.

It would also appear that many more people are planning to become homeowners for the first time.

According to the LSL's First Time Buyer Opinion Barometer, 93 per cent of tenants want to become homeowners and 17 per cent are expected to make a property purchase in the next 12 months - up from 12 per cent in June last year.

A further 38 per cent also believe they well step on the housing ladder in the next five years.

However, many are still relying on support from families, with 39 per cent of first-time buyers using money from the Bank of Mum and Dad to increase the value of their deposits.ADNFCR-1222-ID-801738563-ADNFCR

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