First-time buyer numbers increased by 3% in February marking the best start to a year since 2008, the latest data from the Council of Mortgage Lenders shows.
Activity in the first-time buyer sector was 17% stronger in February than in February last year and combined with January reached the largest number of first-time buyers in the first two months of the year since 2008.
CML Director General Paul Smee said: "First-time buyers are continuing to take advantage of more favourable market conditions helping to drive the underlying trend for resilient house purchase lending.
"We hope that the new initiatives announced by the government in the 2013 Budget will further stimulate first-time buyer activity but also help those “second steppers” looking to move into a new or existing home."
A total of 16,400 loans were advanced to first-time buyers in February up on 15,900 in January and 14,000 at the same time last year.
By value, loans to first-time buyers totalled £2bn, the same amount as the previous month, but 18% higher than in February 2012 (£1.7bn).
First-time buyers accounted for 43% of all house purchase loans in February. This was the sixth consecutive month that this indicator has been at or above 40% suggesting that market conditions continue to improve for first-time buyers.
David Sansome, Managing Director at Sansome & George said: "These figures are very encouraging and another step in the right direction albeit that first-time buyer numbers have been at very low levels since 2008, so the only way really was up.
"The Funding for Lending Scheme has certainly helped provide more competitive rates across the board although only in recent months have we started to see more deals at the higher loan to value end of the market.”
“The CML figures do give a rather mixed picture. On the positive side the number of first time buyers in February was not only higher than the previous month but was also 17.1% higher than this time last year suggesting such buyers are returning to the market which in turn will encourage others to think about moving.
“However, the overall total number of loans at 37,900 was down on 38,200 recorded in January despite the Funding for Lending scheme.”
