First-time Buyers Return

[Johnny Storm]

First-time buyers are returning to the housing market, and are now accounting for the highest proportion of those looking to buy a home in four years.

The findings from the Council of Mortgage Lenders are the latest indication of a pick up in Britain's struggling housing market, which also found borrowers spent the least amount on their monthly mortgages in half a decade.

It found that first-time buyers accounted for 40 per cent of house purchase lending, the highest proportion since April 2005, when it last reached this level. However, the total number of first-time buyers remains low - 12,500, up from 9,200 in February, although significantly below the 17,800 recorded in March last year.

At the same time, home owners spent 13 per cent of their income on mortgage payments, the lowest level since April 2004 when the figure was at 12.7 per cent. It compares to a high of 18.9 per cent in November and December 2007.

Howard Archer, an economist at Global Insight, said: "While housing market activity has passed its low point, ongoing very poor economic fundamentals and still tight credit conditions suggest that the improvement in activity will be relatively gradual and fitful.

"Consequently, house prices look likely to fall significantly further, although we do expect the rate of decline to progressively moderate."

The CML's research comes after a significant fall in house prices, with the average value of a home dropping from £199,612 at the peak in August 2007 to just £154,716 today, according to the Halifax, Britain's biggest mortgage lender.

Lending criteria has eased in recent days with some high street lenders, including Abbey, offering better rates for those with a smaller deposit.

But experts said new borrowers were still relying on their parents to help get them on the property ladder.

Andrew Montlake, of mortgage brokers Coreco, said: "The first time buyer figures are particularly interesting and show that many purchasers are beginning to find slightly larger deposits, helped, no doubt, by the Bank of Mum and Dad."

Bob Pannell, head of research at the CML, highlighted the "sharp dividing line" between those who can raise a deposit and those that can't.

"For those who can, the burden of debt payments is low and mortgage interest is consuming proportionately less income than for a number of years. But for those without significant deposits, entering the market is still both difficult and uncertain," he said.

The CML said 31,000 loans were advanced for house purchase in March, up 29 per cent on the previous month, but a third less than the amount approved during the same time a year earlier.

Remortgaging activity also increased in March compared to the previous month with 40,000 remortgage loans approved, worth £5 billion, and up 8 per cent on February 2009 – but down 45 per cent on March 2008.

http://www.telegraph.co.uk/finance/persona...e-payments.html

[the end is a bit nigher]

Obviously some STRs returning to the market to boost the figure to 40%.

[LondonToManchester]

More good news more activity in the market.

TO MUCH TO GOOD BULL NEWS FOR ONE DAY!!

[juvenal]

Bank of Mum and Dad are not going to be quite so willing to lend when Dad looks at how much his projected pension is, given the hamering shares have had. Nor when his boss calls him in to talk about early retirement.

[Goat]

First-time buyers are returning to the housing market, and are now accounting for the highest proportion of those looking to buy a home in four years.

It found that first-time buyers accounted for 40 per cent of house purchase lending, the highest proportion since April 2005, when it last reached this level. However, the total number of first-time buyers remains low - 12,500, up from 9,200 in February, although significantly below the 17,800 recorded in March last year.

All this says is that BTL is dead so non-BTL is taking a big share of the market.

More good news more activity in the market.

TO MUCH TO GOOD BULL NEWS FOR ONE DAY!!

A 30% drop in FTB number is good news?

It's not called bulls*** for nothing.

[the end is a bit nigher]

More good news more activity in the market.

Yes, finally more acceptance of lower prices as vendors stop holding out for stupid amounts and start to become more realistic.

[bobthe~]

this is from myra butterworth, responsible for the headline:

House prices in Britain rise for first time in 18 months

based on the RICS survey, when RICS own notes should have told her that the RICS survey is not an indicator of price changes.

Fifth

Worst

Journalist

Ever

[kilroy]

More good news more activity in the market.

TO MUCH TO GOOD BULL NEWS FOR ONE DAY!!

I tohught that we covered this on your thread i.e.

FTBs mar 2009 = 12500

FTBs Mar 2007 = 32500

BTL Mar 2009 = not even mentioned in report as neglible

maybe you can find out what they were in Mar 2007?

[Ash4781]

All this says is that BTL is dead so non-BTL is taking a big share of the market.

A 30% drop in FTB number is good news?

It's not called bulls*** for nothing.

Exactly where is BTL coming in exploiting the low low prices?

[Liquid Goldfish]

who are all these FTBs with 25% deposits?

I think mainly STRs who have jumped the gun

MSW was saying last night that this is just a blip as a few people re-enter the market and then numbers will tumble again after the sumer

[Yorkshire Lad]

OK,

You're nearly ready to enter stage 3.

ANGER.

You've done fear. Done denial.

Gazumping coming your way soon.

Serves you bl00dy right for wishing bad on hardworking people. :angry:

Watch the programme on the TV tonight at 8pm BBC2 - see what they say on there and report back.

They will probably say that property has a long way still to fall and people like you will have to stay put for ages because of your denial of things happening in the real world.

You can hold onto your 2007 property prices if you want while the rest of us watch the econony fall to pieces.

Edit: The Boom time has gone - will it ever come back? (BBC2 Property Program)

Edited May 14, 2009 by Yorkshire Lad

[Leonard Hatred]

FTBs mar 2009 = 12500

FTBs Mar 2007 = 32500

BTL Mar 2009 = not even mentioned in report as neglible

I'm using the most powerful screen magnifier you can get, and I still can't see the recovery. What am I doing wrong?

[libspero]

More good news more activity in the market.

TO MUCH TO GOOD BULL NEWS FOR ONE DAY!!

Really?

"Consequently, house prices look likely to fall significantly further, although we do expect the rate of decline to progressively moderate."

Over all still sounds quite bearish to me.

[Valerius]

I'm using the most powerful screen magnifier you can get, and I still can't see the recovery. What am I doing wrong?

You are reading too much HPC material on an internet forum.

You need to get out more.

[Guest theboltonfury]

You are reading too much HPC material on an internet forum.

You need to get out more.

I go out, I see a nation of property obsessed, materialistic buffoons

I prefer inside

[interestrateripoff]

OK,

You're nearly ready to enter stage 3.

ANGER.

You've done fear. Done denial.

Gazumping coming your way soon.

Serves you bl00dy right for wishing bad on hardworking people. :angry:

Excellent.

Exponential growth is not a problem.

God am I relieved, so world population can growth at 1% constantly without any problems.

[Sybil13]

Some 31,000 home loans were granted by lenders, up 29% on February but still 33% down compared with March 2008, the Council of Mortgage Lenders (CML) said

Some 12,500 first-time buyers took out a mortgage during March. This accounted for 40% of all loans, the highest proportion since April 2005.

Roof Magazine:

Lending slump hits first-time buyers

The 2008 third quarter total of 44,300 was the lowest ever recorded and less than half the number made in 2007.

The last time the number of loans went that low was 44,500 in the first quarter of 1974 when the 1970s credit crisis was in full swing

Q1 2009 :

Jan - CML - 8,900 loans minus 51% Jan 2008

Feb - CML - 9,400 loans minus 47% Feb 2008

March - CML - 12,500 minus % March 2008

Total: 30800

So if Q 3 2008 at 44500 was as low a Q1 1974 not sure there is a lot to get excited about in Q1 2009 is there?

Edited May 14, 2009 by Sybil13