First time buyer loans on the increase
According to the Council of Mortgage Lenders the number of time buyers is at its highest level since 2007 before the financial crash occured. The number of first time buyers recorded in the first 6 months of 2013 is 19% higher than then the same period of 2012 rising from 101,000 to 120,000.
There has been 68,200 property purchases in the second quarter of the year with a huge 23,300 loans made during June alone which is a 30% jump compared to the same month if 2012. First time buyers have borrowed an average of £117,000 in June 2013 which has increased from £112,500 borrowed in May 2013. This is an increase of 40% compared to the same period last year although house prices have risen. The total amount borrowed by first time buyers in June 2013 is £3.5 billion which is an increase of 40% compared to June 2012.
However, it’s been a year since the Olympics started in London but according to Savills the expected housing market rise hasn’t yet affected the wider housing market in London. For example the areas of West Ham and Plainstow have seen little evidence of improvement compared to Victoria Park, Kings Park, Stoke Newington and Dalston where the Olympics have benefited the housing market.
Do you think this news proves that the Help to Buy Scheme and the Funding for Lending Scheme have boosted the housing market rather than the Olympics?
Amanda McGovern, Pali Ltd
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