FTB numbers soar to pre-crisis levels - Mortgages - News - Moneyfacts

News

FTB numbers soar to pre-crisis levels

FTB numbers soar to pre-crisis levels

Category: Mortgages

Updated: 06/09/2013
First Published: 06/09/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

First-time buyer (FTB) transactions in July climbed to pre-credit crunch levels, according to the latest report from LSL Property Services.

The number of FTB transactions was up 45% when compared to a year earlier - the highest recorded figure since November 2007.

Month-on-month, FTB lending rose 3.2% when compared to June.

The average asking price for a FTB property increased 8% year-on-year and is now £146,726, while the average FTB loan-to-value remained broadly flat at 79.5%.

Meanwhile, figures from the chartered surveyors group, Connells Survey & Valuation, provided further evidence of the recovery in FTB lending, with its latest report showing FTB valuations were up 40% in August when compared to a year previously and 1% higher than in August 2007.

The director of LSL Property Services, David Newnes, attributed the much-improved figures to the sharp increase in the affordability of mortgages.

"Mortgages are much more affordable for first-time buyers compared to last year, which has opened the door to thousands of would-be buyers who were shut out of the market. Economic confidence is returning, nudging many more buyers in the direction of property, and nudging lenders to offer more loans to buyers with smaller deposits," he said.

He warned, however, that there was a downside to the good news, saying there was not enough housing stock to match continued demand.

"If supply fails to keep pace with demand the housing market will become increasingly unsustainable. Prices will rise sharply, and future first-time buyers will be left in the lurch. There is a desperate need for further cheap property in order for the run of success to continue."

What next?

If you're looking to take your first step onto the property ladder, why not have a look at the Top 6 first-time buyer mortgages?

First time on the property ladder? Compare first-time buyer mortgages

Quick repayment calculator

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Goodbye to the Help to Buy Guarantee

On 31 December, phase two of the Help to Buy initiative will be withdrawn from the market. It’s certainly done wonders for the high loan-to-value sector, so we thought we’d take a closer look at the significance of the scheme and the effect it’s had.

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.
 
Close