Property prices rise but first-time buyer numbers fall
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House prices are 10% higher than in April 2009, with first-time buyers at their lowest level since 2007.
Figures from the Department for Communities and Local Government reveal that the average house price in April was £207,516 - up 10% on the
But figures from the Council of Mortgage Lenders show that first-time buyers made up the lowest proportion of house purchase loans since September 2007, accounting for just 35% of all mortgages - down from 39% in March and 38% in April last year.
The lowshare shows that getting a mortgage remains problematic for first-timers who tend not to have substantial deposits.
Overall, some 40,000 loans were advanced for house purchase in April, worth £5.7bn. This was down from 45,000 worth £6.3bn in March but up from 35,000 worth £4.5bn in April 2009.
Some 24,000 remortgage loans worth £2.9bn were taken out in the month, 26% lower than a year ago in both volume and value.
Andrew Montlake, director of Coreco Group, says: “Although the forthcoming emergency Budget could dampen the recovery lending is still likely to improve in the second half of the year.
“As far as purchase activity is concerned we are beginning to see more enquiries from those looking to buy but who are constrained by the lack of good quality stock.”
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