Average mortgage taken out by FTBs up 13pc
UK first-time buyer property price growth in December 2013 (+10.1% annually) was greater than all UK homes (+8.6% annually) as Help to Buy increased first-time buyer demand.
New first-time buyers increased 82.1% across UK and 86.4% annually in London with new buyers generally across the UK up 44.5% annually but new properties on the market grew only 7.8% annually as demand grew at more than six times the rate of new property supply.
Paul Smith, CEO of haart, said: “Last year was a game of two halves, beginning with a steady and balanced market before acceleration in the summer months and a tsunami of buyers in October to the point we are now at with massive demand but still very little supply of property.
“Despite this, things have never looked better for the first-time buyer who is now able to secure a 13% greater mortgage than this time next year.
“The flip side is that first-time buyer property prices are up 10% annually due to the high demand for such homes.
“Help to Buy will continue to boost first-time buyer finances and confidence throughout 2014 and the numbers of these first-time buyers coming to the market will only increase further.
“In London, demand is growing at around eight times faster than property supply and for the UK as a whole around six times faster – so we will continue to see significant price increases as long as this continues.
“There may be further scaremongering cries of “bubble!” as we move through 2014 but the property market has been resilient with UK annual house price inflation remaining in single figures throughout 2013.
“Given the end of Funding for Lending for mortgages, we forecast house price growth of around 6% over the next few years indicating a healthy, but not out of control market.”