Small deposit buyers continued to increase their share of the UK mortgage market in April 2017, the fourth successive month this has occurred.
These buyers represented 21.5% of the overall market in April, according to the latest Mortgage Monitor from e.surv.
Last month small deposit buyers, which includes most first-time buyers, took a 21.4% share of the market. This current growth trend stretches right back to the end of last year. In December 2016 their market share was 16.1%, this rose to 18.7% in January and again to 20.5% in February.
There was further good news as the overall mortgage market has grown in the last month, stopping the recent decline. There were 67,035 loans (seasonally adjusted) approved in April, up compared to both last month and the same stage last year. This is the first monthly rise since November 2016.
The number of loans increased 0.3% compared to the 64,695 approvals in March. April’s total is also 1.7% higher than the same month a year ago.
Richard Sexton, director of e.surv chartered surveyors, said: “April was a positive month for the UK mortgage industry with the overall size of the market growing on a monthly basis for the first time since November 2016.
“There was even better news for first-time buyers and others with small deposits. Their share of the market has risen yet again in April. That is not to say there aren’t significant challenges ahead, but data from the market this month is overwhelmingly positive.
“Remember, first-time buyers are the lifeblood of the property market. Low rates and better availability have helped people buy their first home. Their presence then allows others to move up the ladder and keep the whole market moving.”