I was interested to read a report from CML (The Council of Mortgage Lenders) advising that first time buyer activity in May reached 250,100 which is 29% higher than in April and 42% higher than in May last year. If you have read my previous blogs you will know how important first time buyer activity is in getting the housing market stabilised and moving again. The CML report also shows there had been an increase in the number of first time buyers entering the market with smaller deposits and this has resulted in the shift in average first time buyer loans to the value (LTV) ratio rising to 83% from 81% in April – the highest ratio since November 2008. The report also advised that the average age of the first time buyer remained at 29.
Paul Smee, CML, commented “Although monthly lending is still running at far less than half its typical monthly levels during the peak, there is no doubt that the mortgage market is firmly open for business.”Lindsay Darroch Partner & Head of Property