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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

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 It is now over 6 months old so the content may be out of date.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."

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