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London sees huge increase in first-time buyers

The number of first-time buyers in London has increased by 32% compared to the same period last year, according to the Council of Mortgage Lenders.

In the third quarter of 2013, more than 13,000 loans were advanced to first-time buyers in the capital which was also an increase of 24% to the previous quarter. In total, £2,960 million was advanced in the third quarter of 2013, a 25% increase compared to quarter two and up 42% compared to the same period last year. In the third quarter, first-time buyers typically borrowed £198,000, an increase from £192,700 in the second quarter this year.

First-time buyer affordability in London remains tighter than in the UK overall. First-time buyers in London borrowed an average of 3.74 times their income in the third quarter compared to 3.67 in the second quarter and 3.59 times their income in the third quarter of 2012.

Home mover lending in London increased by 28% compared to quarter two and a 38% increase in value of the loans.

Total house purchase lending in London was boosted by the increase in lending to first-time buyers and home movers showing an increase of 26% compared to the second quarter and 19% compared to the third quarter of 2012.

CML director general Paul Smee said: “The increase in lending for house purchase in London seems broadly consistent with UK-wide upward trends. First-time buyers were the key driver in the first half of the year in London but re-mortgagers and home movers have shown greater signs of life this quarter.

“As the Mayor of London’s housing strategy shows, the London housing market has especial challenges and we will work with the Mayor in tackling them.”

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Harvey Harding

Harvey has over 10 years practical legal experience within private practice and is responsible for PM Law’s Property, Wills, Trust and Probate, Employment and Civil Litigation teams. Harvey is a practising solicitor and is committed to ensuring clients receive a seamless, straight-forward, quality service.