First time buyers returning to market

24 January 2005
The CML has said first-time buyers are returning to the property market.

New figures show that over 2004 more mortgages went to new homeowners than in 2003, although the number is still historically low.

Council of Mortgage Lenders director general Michael Coogan commented: "Over the year as a whole we anticipate a stable [mortgage] market, with a healthy level of activity but without the dramatic increases in house prices and lending volumes experienced in 2004.

"Against this backdrop, homeowners are likely to lose some of their appetite for borrowing against their housing equity, and first-time buyers may well see affordability constraints ease a little as their earnings have a chance to grow more quickly than house prices."

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