First time buyer numbers up 15%

First-time buyer numbers rose 15% in April as buyers were able to access record low rates and a wider choice of mortgages, the latest First Time Buyer Monitor from LSL has revealed.

There were 22,000 first-time buyer transactions in April, almost 3,000 more than in March, when there were just 19,100 transactions.

Average mortgage rates remained low rising slightly to 4.31% in April from a record low of 4.29% in March.

Annually, the average mortgage rate was 0.35% lower than in April 2012 with falling headline rates helping to attract more first-time buyers.

The Monitor found that the average LTV in April 2013 rose to 80.4% from 79.9% in April 2012, reflecting greater lending to high LTV borrowers compared to last year.

The average deposit rose 3% to £27,178 in April, despite lower rates and a rise in the average LTV, because of rising house prices.

There were 78.6% more transactions in April 2013 than a year ago, when there were just 12,300 transactions.

However this figure is slightly distorted, due to an artificial spike in first-time buyer numbers in March last year caused by the implementation of new stamp duty rules on the 25th March 2012 which introduced a 1% stamp duty on properties valued between £125,000 and £250,000.

Peter Lawrence at Lawrence Rand said: “Transactions among first-time buyers increased in April as an improvement in the availability of high loan to value mortgages allowed more first-time buyers to realise their dreams of home ownership.

Increased lender confidence and the Government’s Funding for Lending Scheme has led to lower mortgage rates and a wider range of first-time buyer mortgages being available.”