Lending to first-time buyers rocketed 37pc at end of 2013
Better economic conditions and Help to Buy prompted more and more Brits to take steps to become home owners at the end of 2013, according to new data from the Council of Mortgage Lenders (CML).
Lending to first-time buyers jumped 37 per cent in December from a year earlier.
Paul Smee, CML director general, said first-time buyers were particularly important in propelling the market forward last year.
Growth was seen in all types of borrowing in 2013.
The number of people buying houses climbed 19 per cent in December from a year earlier.
When it came to loans to buy houses, the number taken out was down one per cent from November, but leapt 27 per cent from December 2012.
Commenting on the data, Smee said:
The consistent upward lending trend seen throughout 2013 would suggest relative optimism going forward.
But there are challenges ahead, not least in implementing the Mortgage Market Review regulation in April and in ensuring that there is no suggestion of a property bubble; and all this will be key to determining how the market will perform in 2014.
When it comes to the impact of government scheme Help to Buy, Mark Harris, chief executive of mortgage broker SPF Private Clients, comments:
Help to Buy continues to play a big part in encouraging first-time buyers to get on the housing ladder. However, beyond the scheme, lenders are offering high loan-to-value deals at even more competitive rates, so there are other options.
Earlier this month, the Bank of England reported gross mortgage lending in December was £16.8bn. There was a slightly seasonal dip of one per cent, but the number was up 49 per cent compared to December 2012.
Lending for housing has really taken off – and looks set to continue. Businesses lending, however, is still struggling to gain traction.