First-time buyer numbers rising

The number of first-time buyers increased by 20% in March according to the Council of Mortgage Lenders.

Just over 19,000 loans - worth £2.4 billion - were advanced to first-time buyers in March, say the CML, up from just under 16,000 in February but down on the 24,400 in March 2012.

In the first three months of the year 1 in 4 first-time buyers put down a deposit of 10 per cent or less, up from 1 in 5 in the same period last year. First-time buyers also borrowed a slightly larger amount in March than in February and
continued to account for an increasing proportion of all house purchase loans, increasing to 45 per cent in March from 43 per cent in February.

CML director general Paul Smee said: "First-time buyer activity in the first three months of the year was nearly at the same level as last year when figures were buoyed up by the end of the stamp duty holiday. This suggests that the market continues to be favourable for those looking to buy their first home.

"More borrowers are taking out higher loan-to-value mortgages than any other time in the last four years, a sign that lenders are open for business, and that borrowers, even those without a large deposit, are increasingly able to get a foot on the property ladder."

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: "Those all-important first-time buyers are returning to the market. However, the number of first-time buyers is down on March last year. What it does show is that the market is still subdued and has a long way to go to satisfy the definition of a sustained recovery."

Richard Sexton, director of e.surv chartered surveyors, said: "The first-time buyer market is starting to froth again after falling flat since the financial crisis. Lenders are in a much better position to support high LTV borrowers, and that is beginning to translate into a wave of activity at the bottom of the market. These are the most encouraging signs yet of a genuine recovery in the housing market. Last year banks were hesitant to lend to first-time buyers with a deposit of less than 20%, but now they’re now in a much better position to consider mortgage applications from high LTV borrowers, thanks largely to the Funding for Lending Scheme. First-time buyers are the beating heart of the housing market. Now that heart is beginning to pump again, it will help to rehabilitate the rest of the market."

Discover more property articles at Homes and Property
Sport
tennisLive: Follow all the updates from Melbourne as Murray faces Czech Tomas Berdych in the semi-final
Arts and Entertainment
'The Archers' has an audience of about five million
radioA growing number of listeners are voicing their discontent; so loudly that even the BBC's director-general seems worried
Life and Style
tech
Arts and Entertainment
'Salisbury Cathedral from the Meadows' by John Constable
art
PROMOTED VIDEO
Arts and Entertainment
Henry VIII played by Damien Lewis
tvReview: Scheming queens-in-waiting, tangled lines of succession and men of lowly birth rising to power – sound familiar?
Sport
Harry Kane celebrates scoring the opening goal for Spurs
footballLive: All the latest transfer news as deadline day looms
Arts and Entertainment
Master of ceremony: Jeremy Paxman
tvReview: Victory for Jeremy Paxman in this absorbing, revealing tale
News
Sir David Attenborough
people
Life and Style
Young girl and bowl of cereal
food + drink
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Senior Communications Executive

£28000 - £30000 per annum: Recruitment Genius: This is a fantastic opportunity...

Ashdown Group: SQL DBA (SSIS, ETL) - London, £60k

£60000 per annum: Ashdown Group: SQL DBA (SSIS, ETL) - Central London, £60,000...

Recruitment Genius: Compliance Assistant

£13000 per annum: Recruitment Genius: This Pension Specialist was established ...

Recruitment Genius: Service Agent / QA Engineer

Negotiable: Recruitment Genius: This is an exciting opportunity to join an est...

Day In a Page

Isis hostage crisis: Militant group stands strong as its numerous enemies fail to find a common plan to defeat it

Isis stands strong as its numerous enemies fail to find a common plan to defeat it

The jihadis are being squeezed militarily and economically, but there is no sign of an implosion, says Patrick Cockburn
Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action

Virtual reality: Seeing is believing

Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action
Homeless Veterans appeal: MP says Coalition ‘not doing enough’

Homeless Veterans appeal

MP says Coalition ‘not doing enough’ to help
Larry David, Steve Coogan and other comedians share stories of depression in new documentary

Comedians share stories of depression

The director of the new documentary, Kevin Pollak, tells Jessica Barrett how he got them to talk
Has The Archers lost the plot with it's spicy storylines?

Has The Archers lost the plot?

A growing number of listeners are voicing their discontent over the rural soap's spicy storylines; so loudly that even the BBC's director-general seems worried, says Simon Kelner
English Heritage adds 14 post-war office buildings to its protected lists

14 office buildings added to protected lists

Christopher Beanland explores the underrated appeal of these palaces of pen-pushing
Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Scientists unearthed the cranial fragments from Manot Cave in West Galilee
World War Z author Max Brooks honours WW1's Harlem Hellfighters in new graphic novel

Max Brooks honours Harlem Hellfighters

The author talks about race, legacy and his Will Smith film option to Tim Walker
Why the league system no longer measures up

League system no longer measures up

Jon Coles, former head of standards at the Department of Education, used to be in charge of school performance rankings. He explains how he would reform the system
Valentine's Day cards: 5 best online card shops

Don't leave it to the petrol station: The best online card shops for Valentine's Day

Can't find a card you like on the high street? Try one of these sites for individual, personalised options, whatever your taste
Diego Costa: Devil in blue who upsets defences is a reminder of what Liverpool have lost

Devil in blue Costa is a reminder of what Liverpool have lost

The Reds are desperately missing Luis Suarez, says Ian Herbert
Ashley Giles: 'I'll watch England – but not as a fan'

Ashley Giles: 'I'll watch England – but not as a fan'

Former one-day coach says he will ‘observe’ their World Cup games – but ‘won’t be jumping up and down’
Greece elections: In times like these, the EU has far more dangerous adversaries than Syriza

Greece elections

In times like these, the EU has far more dangerous adversaries than Syriza, says Patrick Cockburn
Holocaust Memorial Day: Nazi victims remembered as spectre of prejudice reappears

Holocaust Memorial Day

Nazi victims remembered as spectre of prejudice reappears over Europe
Fortitude and the Arctic attraction: Our fascination with the last great wilderness

Magnetic north

The Arctic has always exerted a pull, from Greek myth to new thriller Fortitude. Gerard Gilbert considers what's behind our fascination with the last great wilderness