First-time buyers strengthen London market

11,200 loans for house purchase were granted to first-time buyers in London in the second quarter of 2013, the largest quarterly figure since the end of 2007.

According to new data from the CML, these figures helped to further strengthen a positive quarter for the London housing market.

The 11,200 loans marked an increase of 19% on the previous quarter and 38% from the same period in 2012.

First-time buyers in London made up 56% of house purchase loans compared to 46% in the UK overall.

London first-time buyers borrow an average of 3.67 times their income compared to 3.30 for the UK overall in the second quarter.

There were 20,100 house purchase loans advanced in London worth £5.1bn in total, a 23% rise in value compared to the first quarter of 2013 and up by 20%compared to the second quarter last year.

CML director general Paul Smee said: “Mortgage lending in London has followed a similar pattern to the rest of the UK with strong house purchase activity this quarter, strengthened particularly by first-time buyer activity.

"Total lending for house purchase has also increased this quarter upon last and from a year ago which suggests increasing confidence that economic conditions are becoming more favourable."

Today's Conveyancer