Number of first-time buyers fall in April

Despite the introduction of government schemes designed to support struggling buyers in their bid to become homeowners, the latest figures have shown that the number of first-time buyers fell in April.

Data from the Council of Mortgage Lenders (CML) showed that April marked the first downward turn in lending to first-time buyers for four months, with a total of 19,400 loans worth £2.5billion.

While lending to first time buyers dipped by 1% between March and April, the number of loans issued to first-time buyers has actually increased by a staggering 57.7% in a year-on-year comparison.

The share of the market occupied by first-time buyers was also strong in April at 46%, a figure that is significantly higher than the property market peak up to 2007, when first-time buyers accounted for 38% of total borrowing.

Further figures from the research showed that the average deposit size for first-time buyers had fallen to 19% in April, from 20% in March, perhaps indicating that lenders are easing the size of deposits they require to secure a mortgage.

CML director general Paul Smee argued that government initiatives will have an impact on the first-time buyer market.

“The Help to Buy scheme announced in this year’s Budget should provide a further boost to the first-time buyer and home mover markets, but we still await further details on how the initiatives will work,” he said.

The CML’s comments come in spite of the fact that a recent report by former Bank of England economists found that the Help to Buy scheme, which offers all buyers the chance to snap up a new build home with a 5% deposit and a 20% equity loan from the government, could see the cost of a home rise 30% by 2015.

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Posted by: Nicola Severn Categories: Buying Property Tags: , Comments Off on Number of first-time buyers fall in April

0 Responses to Number of first-time buyers fall in April

  1. avatar Mike says:

    It is a big scam this government scheme. Are a lot of hidden fees and a lot of interest on top after you buy and you have to pay the goverment money after you finish your mortgage and until then you pay interest + to the bank. This mean + £40000 on top op your deal. Good luck.