10,000 First-Time Buyers In London Rises To Highest Figure In 3 Years

In the first of a series of new quarterly reports on lending in London, the Council of Mortgage Lenders (CML) reports that a total of 10,000 first-time buyers took out a mortgage in London in the third quarter of 2012.

This was the highest number in the capital in a single quarter for almost three years.

First-time buyers in London put down larger deposits than in other parts of the UK despite higher house prices and tougher affordability criteria. They also purchased properties with an average loan-to-value (LTV) ratio of 75%, a figure unchanged since the third quarter of 2008, and less than in the rest of the UK at 80%.


Commenting on the data, CML director general Paul Smee said: "The London housing market faces similar issues to the rest of the UK in terms of a lack of supply and affordability, yet different demographics, population flows and tenure patterns mean that it is also unique.

"With the Mayor now directly responsible for housing strategy and investment in London, we look forward to seeing his finalised London Housing Strategy. Lenders want to be recognised as part of the solution and we will work constructively with the government and the GLA on deliverable solutions to London’s housing challenges."