The recently released first time buyer barometer by LSL has revealed that the number of first time buyers has increased by 47% in the last 12 months, rising 8% in April even with the introduction of the new Mortgage Market Review.
Opinions about whether the new mortgage application system is affecting first time buyer’s ability to get on the property ladder appears to differ significantly between London and the rest of the UK, with three times as many first time buyers in London feeling that the new lending criterion are making the application process harder.
The report added that the purchase prices for first time buyers have increased by 10% over the past year and now sit at an average of £145,655, with an average mortgage of £125,037.
David Brown, commercial director of LSL property services added “The tightening of mortgage criteria hasn’t dampened the appetite for first time buyer property… Many more buyers are making the jump onto the property ladder, while deposit requirements and mortgage rates remain relatively low.”
Source: http://www.introducertoday.co.uk/542-first-time-buyers-up-47-in-a-year; LSL FTB Barometer 30/05/2014