First-time buyer loans at five year high

The latest Council for Mortgage Lenders (CML) figures released today show that 26,800 loans were advanced to first-time buyers in October, the highest number of loans in a monthly period since November 2007.

The total number of loans advanced to home-owners for house purchase was up 17% from September and 24% year-on-year.

Whilst the total number of loans increased the number of loans advanced to home-owner remortgagors fell in October both from September and year-on-year. Figures from across the industry were positive about the figures.

David Whittaker, managing director of Mortgages for Business, said: “Over the course of 2013 the property market has gradually picked up speed. Demand is ticking upwards steadily, and this is good news for every aspect of the property industry.

“Supply from new building projects is taking longer to respond but the incentives are here and activity across the board is going in the right direction. Landlords in particular have benefited from lower mortgage rates than a year ago — and as the financial world gains confidence in the recovery the availability of more complex buy to let finance is steadily rising too.

“In 2014 I expect finance will become easier to access and more flexible, while demand for property seems set to keep on growing.”

Paul Hunt, managing director of Phoebus Software said: “It’s clear the mortgage market will continue to flourish, thanks to the major boost from the bottom up that will make the whole market more fluid.

“Although the Funding for Lending scheme may have been scrapped, lending will continue to rise in 2014 thanks to the Help to Buy scheme which will be the main force in driving the market forward.

“While more attractive deals come to the surface, I expect further signs of recovery to lending levels in the New Year.”

John Bagshaw, Corporate Services Director of Connells Survey & Valuation, said: "After a year of records this is confirmation of an upwards trajectory for the housing market.

“Our data shows that valuations to first-time buyers has already surpassed August 2007 levels and this momentum looks set to carry through to the New Year.

“Help to Buy is helping thousands of buyers overcome huge obstacles created by wage freezes, inflation and lower saving rates to realise their dreams of buying property – and the housing market is thriving as a result.”

Today's Conveyancer