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Wednesday 17th September 2014
Max 23°C | Min 16°C

First-Time Buyers 'Getting A Shot At Long Last'

Thursday, 21st August 2014 22:13

The number of first-time buyer sales has hit a seven-year high, according to new figures from LSL Property Services.

There were 30,000 first-time buyer sales in July, up by 25% on a year before and the highest number of monthly first-time buyers since August 2007.

At the same time, the data reveal average first-time buyer deposits are 10% lower than this time last year.

Down payments averaged £26,642 in June, a decrease from £29,609 12 months ago.

David Newnes, from LSL Property Services, said: "A whole generation of young buyers were trapped on the sidelines of the property market as the economy recovered from the recession, struggling to save for a deposit whilst inflation remained stubbornly high, savings rates were stuck at a historic low, and real wages fell.

"But the recent increase in high LTV (loan to value) lending options - enabled by Help to Buy - has allowed them a shot at getting on the ladder at long last."

Yet purchase prices are on the rise, and mortgage rates are climbing, meaning buyers could still struggle with debt and repayments.

First-time buyers paid 8% more over the last year, with the average price paid for a new home now £155,844, according to LSL Property Services.

Simultaneously, average mortgage rates climbed for the fourth consecutive month in July to 4.19%.