Lending to first-time buyers jumps by a quarter

Lending to first-time buyers in July was up 25% on the previous year, lenders have reported.

The Council of Mortgage Lenders said there were 30,200 first-time buyer loans in July – 3% more than in the previous month.

The typical first-time buyer loan was £127,500.

Lending to home movers was also up, with 37,500 house purchase loans advanced – 15% up on June and 19% up on July last year.

In total, there were 67,700 loans for house purchase, up 10% on June and up 21% on July 2013.

The CML figures also show 17,500 buy-to-let loans in July, up 12% on the previous month and 18% on the year.

The NAEA has said that activity by young buyers under the age of 30 is at a record low, representing just 3% of the market. However, the CML figures appear to be the latest data to counter the claim – although the CML does not mention ages.