London first-time buyers increase by a third
The value of lending also made a dramatic increase, as £3bn was advanced in the fourth quarter of 2013, 49% more than the same period the year before.
13,400 loans were advanced to first-time buyers in London in Q4 of 2013, an increase of 6% compared to the previous quarter.
Bob Pannell, chief economist at CML, said: “The London housing market has particular challenges but lending experienced similar rates of growth to the rest of the UK during the fourth quarter.
“First-time buyers have continued the strong upward trend in lending we have seen throughout 2013 and, despite much debate in political spheres about their affordability plight in the capital, an increasing number are realizing their aspirations to become home-owners.”
Affordability remains a worry in the capital, as buyers borrowed an average of 3.79 their income compared to 3.60 the year before.
In 2013 overall first-timers in London were advanced a total of 45,800 loans, up 24% compared to 2012.
They typically borrowed £198,900 in the fourth quarter, and spent 20.6% of their income on mortgage repayments, surprisingly less than the same period in 2012, when they spent 21.3%.
In Q4 54% of first-time buyers bought properties priced at more than £250,000, up from 47% the year before. Just 2% meanwhile bought a property for less than £125,000, compared to the national average of 33%.
House purchase wise, in 2013 the total value of the loans in London were £21.3bn, 19% more than 2012.