The number of first time property buyers has risen to a seven year high, according to new figures – there were 31,400 new homeowners last month, the highest figure since August 2007.
The statistics released by LSL Property Services point to the positive impact of the government’s Help To Buy scheme, where prospective home buyers can borrow up to 20 per cent of the cost of their new-build home so they only need to be able to put up a five per cent cash deposit and take out a 75 per cent mortgage to make up the rest.
The average deposit paid by property newcomers has also fallen by ten per cent in a year.Buyers now pay an average of £23,802 to secure their first home, which is the lowest figure in three years.
And the average deposit now represents 66 per cent of income which is also down from the 77 per cent recorded last year.
Researchers found that average prices paid by first-timers has increased by six per cent over the past year - a jump of around £7,781 since March last year – although mortgage repayments have remain static.