FTBs account for more of the market

Published: February 08, 2008

The number of first-time buyers (FTBs) entering the UK property market increased by two per cent in January.

New figures from Spicerhaart Financial Services reveal that FTBs accounted for a third of all purchasers in the month.

It is good news for the market and is even more impressive considering other trends which Spicerhaart has highlighted.

The firm has revealed that the number of people taking out loan to value (LTV) mortgages of 95 per cent fell in the month.

Steve Cox, operations director at Spicerhaart, said that this is a good sign for the UK housing market.

"When looking at this drop in high LTV mortgages, it is interesting to note the increase in first-time buyers," he commented.

"Those just starting on the property ladder have been encouraged by the drop in the base rate, but have not been put off by the need to put down a larger deposit.

"It is this sort of confidence which is essential to reignite the property market," added Mr Cox.

FTBs were boosted by a 0.25 percentage point cut to the base rate of interest in February.