Mortgages  

Average house prices for FTBs rise 16% to £155,832

The director of Your Move, part of LSL Property Services, said the market had been “firing forwards”, but the only reason why first-time buyers had been able to get their foot in the rung was because of the high loan-to-value lending on offer.

Mr Newnes said: “While the property market has been firing forwards, wage growth has been stuck in the mud of the economic recovery. Prices for first-time buyer properties have been marching steadily upwards and have now reached a new record.

“The property market has remained accessible to first-time buyers, because an increase in high LTV lending has offset rising prices.”

LSL Property Services said that house prices also rose by £5000 in the month to January, while the average first-time buyer deposit was £27,500 in January.

For the first time in seven months, first-time buyer deposits are rising as a proportion of income, as real wages stay stagnant. High LTV lending is also rising, with the average LTV for new buyers 82.3 per cent.

The data showed that first-time buyer transactions are a third higher than in January 2013, with data suggesting they will pick up further in February.

According to the data, lending to borrowers with a deposit of 15 per cent or less, typically first-time buyers, bounced back in January after the Christmas dip.

Adviser view

Simon Webster, managing director of Kent-based Facts & Figures: Chartered Financial Planners, said: “House prices have always risen but people want to own their own homes rather than rent, which they should be able to do. Thirty years ago you couldn’t get a mortgage unless you had been with your bank/mortgage lender for two years.”

RegionApplications

South East

 322,079

Greater London

 264,472

North West

 158,470

South West

 138,679

West Midlands

 114,701

Yorks & Humber

 109,791

East Midlands

 101,241

North

   70,339

Wales

   66,005

East Anglia

   58,943

England & Wales (not assigned)

         64

Isles of Scilly

         59

Total

1,404,843

Source: Land Registry