CML: First-time buyer numbers dwindle

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by Kay Murchie

Figures from the Council of Mortgage Lenders (CML) have revealed first-time buyer numbers are falling, despite changes to stamp duty and house price falls.

According to the Council, the 14,300 loans advanced to new entrants in April accounted for just over one third (35%) of mortgages.

This was down from 39% in March and 38% seen in the same month a year earlier.

The fall comes despite ex-Chancellor Alistair Darling’s decision in March to scrap stamp duty for first-time buyers on homes costing up to £250,000.

However, the scrapping of the levy comes at a time when first-time buyers still need a hefty deposit because of the credit crunch so are therefore unable to get a foot on the property ladder.

Commenting on the findings, CML director-general Michael Coogan said: “Easter traditionally causes a dampening of lending levels and this year was no exception.

“First-time buyers were particularly affected, perhaps because of the alteration to stamp duty, and in anticipation of the changes arising from the economic and political uncertainty of recent months.”

According to the CML, first-time buyers put down an average deposit of 25% of their home’s value in April, compared with 24% in March.