First time buyer investment has risen.

27-Jan-2014

A series of new statistics has served to throw a light on the increasing number of first time buyers investing in a property.

The latest barometer from LSL Property Services has revealed that the number of first time buyers purchasing a house has risen, while the average first time buyer deposit in 2013 has dropped by 3.6 per cent.

According to its data, there were 29,100 people taking their first step onto the property ladder in December. This represented a 30 per cent rise compared to the same month in 2012.

The rise in new buyers coming onto the market has been attributed to the Help to Buy scheme which has enabled potential homebuyers to buy a property with just a five per cent deposit.

However, although there are more people purchasing a home for the first time, the analysis showed that house price rises were starting to eat into the finance of first time buyers.

Commenting on the findings, David Newnes, director of LSL Property Services, said: "First-time buyers are returning to the market in their droves, as the property market emerges fully from the shadow of the financial crisis. There is a greater array of deals on offer to buyers with just a small deposit saved, and schemes like Help to Buy are providing vital support to help new buyers access the very best rates.

"As with the entire market, prices are quickly climbing upwards, but lower rates mean that mortgage repayments are still affordable, despite new buyers having to purchase property with a higher price tag."

Earlier this month, a report by the National Association of Estate Agents (NAEA) revealed there was a 14.4 per cent increase in the number of house hunters in December 2013.

The rise in demand also led to a constraint in property supply, with a recorded 7.9 per cent fall from an average of 51 properties available for sale in November 2013 to 47 in December.

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