17,000 First Time Buyers Excluded from Mortgage Market

Readers of previous blogs will know that I have been campaigning over the last few years asking for Government assistance for first time buyers.  I was very interested to read figures from the British Bankers Association showing that the number of would be first time buyers left out in the cold in September was a staggering 17,000.  There were 33,130 house purchase approvals in the month of September which, although down on August, was 8% higher than in September 2010.  The Banks’ gross mortgage lending totalled £8.4b and was up 7% on September 2010.  The British Bankers Association also show that gross mortgage activity is being driven by the buy to let market.  David Dooks, Statistics Director, advises “A modest stimulus to gross mortgage lending is coming from the buy to let sector as rental yields continue to improve”.

These figures show a stuttering recovery in the property market but also once again reinforces the need for assistance to be given to first time buyers.  The Council of Mortgage Lenders’ stats show that in the 12 months to August an average of 15,800 first time buyers per month secured mortgages compared to a monthly average of 33,100 per month between 2002 and 2007.

I will continue to keep you advised of figures.

Lindsay Darroch
Partner and Head of Property

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