The value of the first-time buyers market was more subdued in April, where the value of FTB apps totaled £6.2 billion. This compares to £8bn in March, up 42% from £5.6bn in February.
Data provided by CACI and analyzed by First Direct reveals that although the April figure is down month-on-month, it is the second highest amount recorded since September 2022, highlighting a image improved in recent months.
The overall mortgage market, which also includes movers and remortgages, was worth a total of £26.6billion in March – the first time it topped the £20billion mark since September of the year last and an increase of £8.9 billion on the previous month. . In April 2023, he was worth £19.8 billion.
Carl Watchorn, Head of Mortgages at First Direct, comments:“Generally, March and April tend to be among the busiest months of the year when it comes to first time buyer activity. March typically sees a surge in inquiries after what is often a quiet start to the year. .
“It is really encouraging to see the market recover in March and April to a level of demand not seen since September 2022. A closer look at this data also reveals that the value of first-time buyer loans has doubled since the fourth quarter. from last year ; a fundamental segment for a dynamic housing market.
The average first-time buyer loan reached £211,766 in April 2023, an increase of over £17,000 since the start of the year, an increase of 8.8%.
This is the highest figure seen since July 2022, when the average first-time buyer loan was worth £212,153.
Other categories of homebuyers have also seen an increase, with mover loans up £14,200 since January and mortgages up £9,500.
However, the average loan value for first-time buyers has seen the most dramatic increase this year.
Watchorn is encouraged by the latest data: “The news that the average loan for first-time buyers is increasing is likely a sign of increased confidence in the sector, although it once again highlights the challenge facing many young people trying to bridge the gap between average income and average house price.
He adds: “It is also important to consider that the average deposit for a home for a first-time buyer is now over £60,000. Faced with higher rates than we’ve seen in several years, many buyers will be looking to save the biggest down payment possible in order to get a cheaper rate against a lower LTV product.