First-time buyer activity to boost the market in 2013
14th Dec 2012
The number of first-time buyers coming onto the UK property ladder could help to provide a boost to the sector throughout 2013 thanks to new incentives that have helped to increase their access to housing for the first time since the crash of 2007.
According to the latest data released by the Council of Mortgage Lenders (CML), people who were getting onto the ladder for the first time accounted for four in every ten houses sold throughout the duration of October.
Part of the reason for this increase in the proportion of people taking their primary step onto the bottom rung is down to the way that the government has helped to boost access to finance throughout the course of 2012.
On one hand, Westminster introduced the NewBuy scheme in March of this year in place of the much-celebrated stamp duty holiday, and it has been successful ever since, thanks to the fact buyers can get a mortgage with only a five per cent deposit on the price of a new house.
With the CML report stating that the average down payment for lending still stands at around 20 per cent for a first timer, the scheme has been a great way for a larger proportion of people to be able to gain themselves a footing on the ladder in the past few months.
As well as this, the government moved to introduce Funding for Lending towards the end of the year, as a way of providing banks with more money, allowing them to lend with confidence that had previously been lacking in the mortgage market.
This also appears to have worked effectively, with the CML reporting that there were 49,500 mortgages approved during October, an increase of 19 per cent in the past 12 months.
CML director general Paul Smee said: "More positive figures in October, after a slow September, suggest that the underlying trend in house purchase lending of modest year-on-year growth will continue. However, usual seasonal factors may act as a counter to lending levels in the coming months."
Posted by Staff Writer: Ewan Robertson
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