First time buyer rates up 28%

November saw the number of first-time buyers climb 28% year-on-year thanks in part to the lowering of mortgage rates by lenders.

According to the latest First Time Buyer Tracker from LSL Property Services there were 27,800 first-time buyer sales in November, up 6,100 from November 2012.

The average first-time buyer LTV rose to 81.3%, the highest since September 2011, in a sign of the increased availability of mortgages as banks become more willing to lend to those with smaller deposits.

This led average deposit size to fall to £27,942, a 3.4% fall in the past three months with deposits consequently now representing a smaller proportion of first-time buyer incomes, with the average deposit of a new buyer at 76.6% of annual income.

David Newnes, director, LSL Property Services, said: “There has been a revival in the first-time buyer market over the past twelve months, with sales increasing by nearly a third.

“Mortgages are much more affordable, which has opened the door to welcome in thousands of aspiring homeowners who had previously been locked out of the market.

“A boost in economic confidence has attracted more buyers back to bricks and mortar, while banks have equally been far more prepared to lend to those with smaller deposit sizes.”

Today's Conveyancer