Massive rise in first-time buyers
Published by Max Salsbury for 24dash.com in Housing and also in Finance
UK house prices 'continue downward trend'
The number of first-time buyers (FTBs) has soared by 75.7% in the last 12 months.
And in London the amount has more than doubled, rising to 102.4%.
Across the country, FTBs represented 42.2% of all mortgages written by Just Mortgages - a 7.6% increase on August 2012.
FTBs are also forking out less on a deposit, down 3% on last year to an average of £34,997.
Paul Smith, CEO of estate agency group haart, said: “FTBs are back on the scene - this is the best they have had it since the economic crash. Their registrations are up 75.7% 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% 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% 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% LTV mortgage and extreme sub-prime market.”
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