Peter Rollings commenting following the recent mortgage lending figures from the CML
Mon 15 Feb 2010
"The stamp duty holiday encouraged more first time buyers to dare consider the possibility of home ownership. But the holiday is now over, and it is likely this will lead to demand from first time buyers dropping off. First time buyers comprised 20% new registrations at Marsh & Parsons in February 2009, but whilst figure has fallen to 10% this month, it must be said that property in Central London is not typical first time buyer territory.
"The typical deposit required from first time buyers from mortgage lenders grew from 10% in 2007 to 25% in 2009. When you take into account the fact house price increases in London have far outstripped the rest of the UK in the past year - and first timers would now need to put down over 81,000 on the average property - it's no surprise that purchasing a property in large parts of the capital is extremely difficult for the large majority of new buyers who don't have access to parental help."The good news for first timers is that more homes are coming onto the London market which should see house prices rise at a more moderate rate in the coming months. But, mortgage lenders still need to do much more to ensure these buyers are offered more reasonable terms and fairer home loan rates. First time buyers are pivotal to the long-term health of the market.
"That said, the near doubling in the number and value of house purchase loans in December 2009 compared to twelve months earlier is a very positive indication of the turnaround thats taken place in the property market."
For further information please contact:
The Wriglesworth Consultancy Tom Urpeth / James Staunton 0207 427 1400
Marsh & Parsons has been part of the London property scene since 1856. The sales and lettings agent has 15 offices situated in prime positions across central, west and south London. They have an intimate and extensive knowledge of the area.
Marsh & Parsons are an independent and professional firm with a 'can-do' attitude covering all aspects of residential property. They aim to establish individual relationships with clients through a business built on energy, agility, professionalism and knowledge. Their business aim is to be the agent who not only understands the local area around their offices better than any other agent, but also to be at the heart of the community.