First-time buyer transactions increased by 15% in April, totalling 22,000.
- 22,000 properties were purchases by FTBs in April 2013
- This is 15% more than in March
- 51% of FTB transactions in April were self-funded
The number of first-time buyers (FTBs) that entered the UK property market in April rose by 15% in comparison with the previous month.
According to LSL Property Services, there were 22,000 house purchases by FTBs during the month, which is 2,900 more than there were in March 2013.
Director of LSL Property Services, owners of estate agents Your Move and Reeds Rains, David Newnes said: “Transactions among [FTBs] increased significantly in April as an improvement in the availability of high [loan-to-value] mortgages allowed more [FTBs] to realise their dreams of homeownerships.”
He stated that an increased confidence in the housing market by banks and loan providers has led to lower mortgage rates and a wider range of home loans for FTBs.
The firm showed the average deposit by FTBs in April was £27,178, which is marginally more than the amount put down by this group of homebuyers in March when it was £26,406.
It also revealed 51% of FTB purchases were self-funded, while the rest received help from their family or a government scheme; of the group who bought property, 11% said they thought it was a good time to invest as house prices will continue to rise.
Indeed, LSL Property Services revealed house prices rose by 0.3% between March and April this year, taking the average cost of a property in the UK to £231,170. This is also 3% higher than it was in April 2012, demonstrating a steady climb in real estate values.
Figures from the Council of Mortgage Lenders also revealed more activity among FTBs, stating the number of FTBs entering the market between February and March rose by 20%, with 19,100 first-time buyer mortgages given out in March.