Housing Market Boosts Confidence

This article of the Express on September 23th, 2013 reveals that the economy is now on its strongest levels because of the rise of market housing and jobs.

Consumer confidence in the economy has improved to its strongest levels in at least two-and-a-half years as optimism about the housing market and jobs rises, a report has found.

Sentiment towards the housing market is at its strongest since Lloyds Bank's Spending Power report began in November 2010, while worries about employment were also found to have eased.

Almost one fifth (18%) of people felt positive about the economy in August, showing a sharp increase from just over one in 10 (11%) in January. The proportion of people feeling negative about the economy fell to 31%, showing the lowest levels since research began.

These findings helped Lloyds' overall consumer sentiment index to rise to an all-time high of 115 points in August, marking a 10 point increase since the start of the year.

Patrick Foley, chief economist at Lloyds Bank, said the findings were "very encouraging". He continued: "Increasing consumer sentiment may in time embolden consumers to spend, so helping to underpin the wider economic recovery. In turn, such spending would further help improve the outlook for growth and jobs."

A new high of 39% of consumers were feeling positive about the housing market, which has recently seen a surge in activity following Government schemes such as Funding for Lending which have improved mortgage availability and led to some lenders offering their lowest ever rates.

House prices have also been back on an upward march in recent months, helping some home owners who have seen falls in the value of their property in recent years and who may have previously been stuck in negative equity.

People living in Northern Ireland, which has seen some particularly sharp drops in house prices before more recent signs that prices are stabilising, were the most likely to be downbeat about the housing market. Nearly three quarters (74%) of those surveyed in Northern Ireland said the housing market is "not good" or "not good at all", as did 72% of those in the North of England.

Meanwhile, negative feelings towards the employment market continued on a downward trend. Some 81% of consumers said the jobs market is "not good" or "not good at all", marking a decrease from 82% in July and 87% in May. Young people were the most likely to be upbeat about the employment market. More than one fifth (22%) described it as "somewhat good", compared with 16% of consumers generally.

People are also feeling less negative about how much money they will have in the coming months. The overall balance between those who feel they will have more money in the future minus those who predict they will have less was minus 3% in August, improving from minus 5% in July.

Article Source: http://www.express.co.uk/news/uk/431441/Housing-market-boosts-confidence

Tips to Increase the Value of Your Home

On this article by Express on September 20th, 2013 shows the different effective ways to increase the value of your property.

According to national estate agent Strutt & Parker the top five ways to increase the value of your home are as follows:

1. Room to Improve

Adding an extension is the most costly outlay but could increase the value of your home by up to 20 per cent.
2. Tap into Healthy Returns

The kitchen is the hub of the home. Creating a real asset by modernizing it can help you achieve your target asking price.
3. No Reason to Blow Hot and Cold

The prospect of upgrading a bathroom may deter some buyers but a new bathroom can be a prized asset.

4. Splash out on this Upgrade

Installing an en suite or wet room will increase the property’s appeal.
5. Appealing Aspects
An attractive garden has been proven to add value to a property. 

Article Source: http://www.express.co.uk/news/property/430774/Five-tips-to-increase-the-value-of-your-home

House Prices Rising at Their Fastest Rate for 3 Years

According to these data and figures from Halifax the average property shot by 5.4% in the three months to August compared with the same time last year as shown  on this article by Mirror on September 7th, 2013.

House prices are rising at their fastest rate for three years, new figures have revealed.

Data from the Halifax showed the average property shot up by 5.4% in the three months to August, compared with the same time last year.

Prices rose by 0.4% in August alone – the seventh consecutive monthly rise, leaving the average home worth £170,231.

Experts say the pick-up in property prices has been fuelled by a flood of cheap finance, boosted by the Bank of England’s Funding for Lending scheme and the Government’s Help to Buy initiative.

Rock-bottom mortgage rates led to a 45% jump in first-time buyers in July, a report earlier this week found.

But critics warn the latest leap in prices is creating another housing bubble that is excluding many people from the property market and lumbering borrowers with large debts.

Halifax housing economist Martin Ellis said: “Overall, house prices are expected to rise gradually over the remainder of the year.”

Halifax’s report follows similar findings from building society Nationwide last week that the housing market revival is gathering pace.

Bank of England governor Mark Carney recently addressed concerns that Government stimulus ­measures risk stoking another property bubble. He said the Bank is “acutely aware” of the potential threats and said action will be taken to clamp down on mortgage lending if needed.

Matthew Pointon, property expert at Capital Economics, said the imbalance between demand and the supply of homes for sale is likely to subside gradually, which will reduce the upwards pressure on prices.

He added: “The rise in wholesale interest rates seen over the past few weeks may soon start to feed through to mortgage rates, dampening demand.”

Comment by Campbell Robb, Chief Executive, Shelter

Some people might cheer as house prices rise again, but not England’s 1.8 million forgotten families.

That’s the number of working families in this country who are taking home between £20,000 and £40,000 – but are still priced out of a reasonable home of their own.

In the past, they would have been able to put down roots in a home they own or in social housing.

But now, their reality is often expensive private renting, where they can find themselves trapped on a merry-go-round of one six-month tenancy to the next. Shelter’s advisers see families like this every single day.

Many simply won’t be able to afford high monthly mortgage payments, thanks to rising house prices.

And Government mortgage guarantees won’t help – because it means borrowing more, and paying higher costs each month.

The root of the problem is that we need more homes that people can afford.

Until we do, the simple laws of supply and demand will keep pushing prices higher.

If we want to give hope to forgotten families, celebrating high house prices won’t help. We need to build more homes.

Article Source: http://www.mirror.co.uk/money/personal-finance/house-prices-rising-fastest-rate-2257130

Warning of London Housing Bubble as Mortages Soar by 29%

This article was published on London Evening Standard on August 20, 2013, written by Jonathan Prynn stating the increased in mortgage may result in dangerous housing price bubble in London.

A dramatic surge in mortgage lending today sparked fresh fears about a dangerous house price bubble in London.

Banks and building societies advanced home loans worth £16.6 billion last month, up 29 per cent on last year and the biggest rise for seven years.

Property experts said low mortgage rates, the Government’s Help to Buy scheme and growing confidence about the economy contributed to the increase in lending.

But MPs warned that the lending boom could simply “pour petrol” on a market already showing signs of overheating and price more Londoners out of home ownership.

Mark Field, Conservative MP for the Cities of London and Westminster, said: “The London market has never really been in the doldrums. The danger here is that affordability of property prices becomes ever more a fantasy for more and more people.”

Government figures last week showed prices rising at eight per cent to a record average £425,000 in June compared with one per cent outside London and the South-East.

The Council of Mortgage Lenders figures today reveal lending is bouncing rapidly from the depressed levels of around £10 billion to £13 billion a month seen since the  banking crisis five years ago, Last month’s total was the highest since October 2008.

The Treasury’s Funding for Lending scheme, aimed at encouraging bank funding for home buyers and small businesses, and the Help to Buy programme, which has already been taken up by 10,000 new home owners, have contributed to the return of confidence.

Borrowers were further encouraged by Bank of England Governor Mark Carney suggesting that its 0.5 per cent lending rate is unlikely to be increased before 2016.

Fixed-rate mortgage deals are at historic lows, with some lenders offering fixed-rate deals below two per cent, levels described as “quite staggering” by Ed Mead of London estate agents Douglas & Gordon.

There have even been the first signs of the return of interest-only mortgages with lenders such as Clydesdale and Yorskshire offering nought per cent for the first three years on some deals.

But leading property experts called on George Osborne to scrap the second phase of its Help to Buy mortgage scheme in London, due to come into force in January.

Doug Shephard, director at property search website Home.co.uk, warned: “The London property market clearly needs no further stimulus; it’s running too hot already.” Stuart Law of buy-to-let investment firm Assetz said lending conditions are so favourable that he expected “double digit” rises in property prices next year.

Shadow housing minister Jack Dromey warned: “Unless the Government invests in building the homes our capital city badly needs, rapidly rising property prices will put the dream of home ownership beyond the grasp of millions of Londoners.”

The Council of Mortgage Lenders’s market and data analyst Caroline Purdey said: “An improvement in sentiment and activity continues to show in the UK housing and mortgage markets, with a more positive picture also starting to emerge in the economy.

“Our forward estimate of gross mortgage lending in July reinforces a growing evidence base of a strengthening in the housing and mortgage markets.” The CML’s members account for 95 per cent of residential home loans in the UK. There are 11.3 million mortgages in the UK, with loans outstanding worth more than £1.2 trillion. However, with many borrowers still effectively locked out of the market — such as those with impaired credit ratings or negative equity — there is still a long was to go until  lending recovers to the peaks of £30 billion in 2006 and 2007.

Nevertheless leading property figures welcomed the return to more “normal” conditions after so many barren years. Richard Sexton, director of chartered surveyors e.surv, said: “The mortgage market has been the pillar of the economic recovery. The freeze on high loan to value mortgages has thawed, and first-time buyer lending is at its highest since the banking crisis.”

Housing minister Mark Prisk said: “Today’s figures show our Funding for Lending Scheme, and record low interest rates, have led to the highest level of mortgage lending since 2008. But alongside this, we’re also pulling out all the stops to get Britain building, and the increased availability of mortgage finance is boosting confidence in the housing market, and encouraging house builders.

“We’ve also been working with the Mayor to invest billions of pounds to deliver the fastest rate of affordable housebuilding for two decades.”

‘High prices have forced us to look outside capital’

MEG Jorsh and boyfriend Jason Rowbottom have become so demoralised by London prices they have taken their property search away from the capital.

The couple bring home a combined income of about £65,000 and are saving £500 each a month for a deposit — despite the £900 monthly rent for their two-bed flat in Beckenham.
They would like to stay in London but have decided to buy in Manchester.

Journalist Ms Jorsh, 29, whose 30-year-old boyfriend is a manager at the Health and Care Professions Council, said London’s property prices were so high that the help-to-buy schemes would have no impact. “We would love to get on the ladder for the security that it gives you, but we know we are in for a long slog,” said Ms Jorsh.

“We are planning to move to the North so what we can buy will actually be decent.
“Even with a £25,000 deposit here, which seems like so much money, we’d probably only end up with a one-bed flat. It would be wonderful to be able to stay in London, but we just can’t have the kind of lifestyle that we would like.

“The whole thing is really depressing and deeply demoralising.”
The couple expect it will take two to three years to raise a deposit.

Article Source: http://www.standard.co.uk/news/london/warning-of-london-housing-bubble-as-mortages-soar-by-29-8776256.html

UK Property Firm Reports Surge in Interest from Australian Investors

PRWeb on August 20, 2013 reveals Knight Know international's interest has extended it's reach into the outback after seeing the high demands in the UK property market from Australian investors.

After selling properties in Asia, the Far East and The Middle East, Knight Knox International has now extended its reach into the outback, after seeing an upsurge in the amount of interest in the UK property market from Australian investors. 

Following the Knight Knox International’s exhibition team’s first ever attendance at an Australian property exhibition, the North West investment firm can report that interest from Australia is indeed high, after taking over 89 enquiries in the three-day show.

Two main factors are being identified as the reason for this upsurge. The first of which is the costly nature of the Australian property market which freezes out many of its own home-grown investors.

Identified in the 2013 Annual Demographia International Housing Affordability Survey as the third most unaffordable major market, properties across Australia continue to experience rises in price.

So much in fact, that the house price index for 8 major cities in Australia rose by 2.6% during Q1 2013, with a surge of 8% in properties in Darwin, an upscale of 6.1% in Perth and a rise of 3.6% in Sydney, according to the Australian bureau of statistics.

The second reason behind this rise in Australian investment is the continuing depreciation of the Australian dollar causing many to put their money in UK Stirling and property, allowing them to both secure their funds and gain financial rewards.

The value of the Australian dollar has been dipping dramatically since April, with the IMF reporting that the dollar has depreciated by around 10% since; this is just one of a series of major drops the dollar has experienced, it also fell by about 7 per cent between May and mid-June and falls such as this, are another reason behind the upsurge in interest in the UK property market.

Alasdair Mcdonald, a member of the Knight Knox International exhibitions team spoke of the rising interest from Australian investors, which he saw direct evidence of at the Sydney Homebuyer and International Property Investor Show.

Alasdair commented: “When discussing potential investment options with Australian investors their true feelings come to the fore, they expressed that there is no country that they would prefer to invest in more than the UK because of the security and also because they are investing in pounds sterling, as well as generating a steadily increasing income on the net rental side. Also as an overseas investor they will be paying zero capital gains tax and be taxed considerably less on their rental.”

The Knight Knox International Exhibitions Team will continue exhibiting on the team's first visit to Australia on August 23rd at the Homebuyer & Property Investor Show, Melbourne.
Investors are urged to come along to the three day event which comes to a close on the 25th of August, to take advantage of exclusive offers the team will be offering in the UK buy-to-let and student accommodation market at the event.

 Article Source: http://www.prweb.com/releases/2013/8/prweb11027188.htm

House Price Rise Doesn't Have Any Bearing on Real Life

In this article on August 17, 2013 by Kate Hughes of The Independent discussing the value of house price rise means nothing because a house only worth what someone will pay for it and besides it's a home and you can't sell what you still need. 

Your home might be worth more on the market, but you still need somewhere to live.

Feeling better about cash, the economy and everything yet? The latest rounds of financial and economic survey data suggest we should be.

Just by way of a quick recap, unemployment is down by 4,000 to 2.51 million in the quarter to June this year, and the number of "economically inactive" people aged 16-64 in the UK was down 10,000 from the first quarter of 2013, according to the Office for National Statistics. Total pay also rose in the last year by 2.1 per cent.

Inflation is also down, very slightly, across the board, with the Consumer Prices Index down just a touch from 2.9 per cent to 2.8 per cent in July, thanks in part to the drop in leisure, cultural and clothing costs, and the Retail Prices Index, which includes housing costs, was down from 3.3 per cent to 3.1 per cent.

Meanwhile, Gross Domestic Product – the broad measure of the state of the economy – is up 0.7 per cent in the last quarter to July according to this month's estimate, following 0.6 per cent growth the quarter before.

And unless you've been in a coma this week, you'll already know that house prices are up by 3.1 per cent in the year, compared with 2.9 per cent in May. The term "escape velocity" is being used with reckless abandon. Happy days.

Except that last piece of good news in particular has no bearing on real life. First, a house is only worth what someone will pay for it, and until the money is in your account, a valuation means nothing. Some unscrupulous agents are already overegging valuations in a bid to max out their commission if it does come off, safely hidden from view by this rising tide.

Second, the British obsession with owning property means we often forget that our house may be our greatest asset, but it's a home first and foremost. And you can't sell what you still need. So unless you're not too worried about having a roof over your head, when exactly are you going to crystallise that "gain"?

Third, if you do sell to move on what difference does it make anyway as your next step on the ladder is likely to have headed the same way, unless you're moving far, which is statistically unlikely, or you are downsizing significantly.

Of course, there's the much-repeated argument about house prices, consumer confidence and economic wellbeing. But consumer confidence based on thin air puts us right back where we were a few years ago, or have we all forgotten?

Unless you have some truly altruistic wish to support the wider economy rather than yourself, go out and spend your cash when you (eventually) get a pay rise, when there is real money in your pocket, not when someone with a sharp but cheap suit tells you your house is worth 5 per cent more than it was the last time you blinked.

Finally, and most importantly, as those outside the South-east of England have learned, house prices can fall as well as rise. But historically low interest rates and pressure on banks not to repossess mean the rest of us have forgotten what that really looks like.

The average house price is now £169,624. (And here I acknowledge that "average" covers a multitude of north-south divide sins.) Meanwhile, the average UK salary before tax is £23,244. Even if there are two or more adults working full time in your household, with one far outstripping the other, this isn't rocket science. And the problem is far, far more extreme in the South-east.

I feel for first-time buyers watching property prices sprint off into the distance. But for them there should be some comfort drawn from the fact that this too is temporary.

Article Source: http://www.independent.co.uk/money/spend-save/kate-hughes-house-price-rise-doesnt-have-any-bearing-on-real-life-8772589.html

Property Prices Near Premier League Football Grounds in the UK up by 135% in 10 years

An article by Ray Clancy on August 12, 2013 of the PropertyCommunity.com shows the increase of property prices close to the premier league grounds as the football season started.

As the football season gets underway the UK annual research into the price of properties close to Premier League grounds shows that they have increased by 135% over the past decade. Prices have more than doubled in the areas close to five grounds, the Halifax premier league football grounds house prices review also shows.

The average house price in the postal districts of the 20 clubs kicking off the 2013/2014 season has increased by 135% or £183,583 in the past decade from £136,300 in 2003 to £319,800 in 2013. This is equivalent to a weekly rise of £353 and is double the 68% increase in house prices across England and Wales as a whole over the period. The average house price in the 20 Premier League stadium postal districts of £319,800 is a third or £79,500 higher than the average for the whole of England and Wales at £240,300.

Average prices have more than doubled since 2003 in the areas close to five Premier League grounds. The biggest increase has been close to the home of 2011/2012 champions, Manchester City, with the average home value in the postal district of the Etihad Stadium rising by 259% over the decade. The area around newly promoted Hull City’s KC Stadium has seen the second biggest increase with a rise in average property prices of 162%. Chelsea and Fulham recorded the third biggest rises, both 102%, followed by Arsenal at 101%.

Newcastle United finished bottom of the Premier League house price table with the average value of properties close to its home ground falling by 11% between 2003 and 2013, the only stadium to record a decline in prices over the past decade. The research also shows that prices have typically risen faster close to new football stadia. Three of the five Premier League postal districts that have recorded the biggest house price increases over the last 10 years are home to stadia that have been built since 2000. In contrast, four of the five Premier League stadium postal districts that have seen the smallest house price growth have stadia that were opened before the outbreak of the Second World War. Newcastle United’s ground, built in 1892, is one of the oldest in the Premier League.

‘The areas surrounding many of the country’s top football clubs have seen house prices rise considerably during the past 10 years, with some of the best performers being those clubs with new grounds,’ said Craig McKinlay, mortgage director at the Halifax. ‘The boost to property prices in these areas partly reflects the local regeneration that typically takes place alongside the building of modern sporting arenas, including improved transport links. There are, however, significant variations in home prices around the nation’s leading clubs with some supporters needing to pay far more to live near the ground of their favourite team than others,’ he explained.

Price variations are considerable around Premier League grounds the postal district covering both Chelsea and Fulham Football Clubs (SW6) is the most expensive to live in with an average house price of £851,812. This is more than 13 times the average price in the least expensive Premier League postal district of L4 which is home to both Liverpool and Everton Football Clubs with an average house price of £63,974. Overall Premier League homes cost nearly 10 times average annual earnings. The average Premier League house price of £319,847 in 2013 is, on average, 9.6 times higher than national average gross annual earnings.

All five of the least affordable Premier League postal districts are in London. Postal district SW6, which is home to both Chelsea and Fulham Football Clubs, is the least affordable Premier League postal district with an average property price of £851,812 which equates to 15.6 times gross average earnings in the area. Arsenal at 10.9 is in the second least affordable postal district, followed by Tottenham Hotspur at 7.2.

Article Source: http://www.propertyforum.com/property-in-the-uk/property-prices-near-premier-league-football-grounds-in-the-uk-up-by-135-in-10-years.html

The number of first-time home buyers in the U.K. is skyrocketing with confidence returning to the market. 

During the second quarter of 2013, 68,200 first-time homebuyers purchased homes, marking the highest quarter for first-time buyer lending since 2007, according to data from the Council of Mortgage Lenders released today. 

A total of 25,300 loans were advanced to first-time buyers in June, a 30 percent increase of the 19,400 loans advanced in June last year. 

Along with a higher number of first-time home buyers, the amount they borrowed went up. The average loan was £117,000 in June, an increase from £112,500 in May. The total value of loans advanced to first-time home buyers totaled £3.5 billion in June, a nine percent increase from May and 40 percent higher than last year, according to the data. 

Although home prices have been increasing, mortgage rates are falling, maintaining the affordability for first-time buyer loans. Most first-time home buyers are taking out fixed-rate mortgages. 

"Average fixed rates are significantly lower across two, three and five year products than they were this time last year, and the latest data shows average five year fixed rates at 3.83pc - the best we have seen in recent memory," Brian Murphy of the Mortgage Advice Bureau told The Telegraph. "The Bank of England has signaled that interest rates are likely to favor mortgage borrowers for the foreseeable future, but with rates this good, fixing still looks like the most appealing option for long-term security."

Since 2007 first-time buyers have accounted for 38 percent of all home purchases. The new data shows the group made up 46 percent of buyers in June. - See more at: http://www.worldpropertychannel.com/europe-residential-news/uk-first-time-homebuyers-uk-housing-market-council-of-mortgage-lenders-home-loans-7206.php#sthash.9NBkj0Vu.dpuf

The number of first-time home buyers in the U.K. is skyrocketing with confidence returning to the market. 

During the second quarter of 2013, 68,200 first-time homebuyers purchased homes, marking the highest quarter for first-time buyer lending since 2007, according to data from the Council of Mortgage Lenders released today. 

A total of 25,300 loans were advanced to first-time buyers in June, a 30 percent increase of the 19,400 loans advanced in June last year. 

Along with a higher number of first-time home buyers, the amount they borrowed went up. The average loan was £117,000 in June, an increase from £112,500 in May. The total value of loans advanced to first-time home buyers totaled £3.5 billion in June, a nine percent increase from May and 40 percent higher than last year, according to the data. 

Although home prices have been increasing, mortgage rates are falling, maintaining the affordability for first-time buyer loans. Most first-time home buyers are taking out fixed-rate mortgages. 

"Average fixed rates are significantly lower across two, three and five year products than they were this time last year, and the latest data shows average five year fixed rates at 3.83pc - the best we have seen in recent memory," Brian Murphy of the Mortgage Advice Bureau told The Telegraph. "The Bank of England has signaled that interest rates are likely to favor mortgage borrowers for the foreseeable future, but with rates this good, fixing still looks like the most appealing option for long-term security."

Since 2007 first-time buyers have accounted for 38 percent of all home purchases. The new data shows the group made up 46 percent of buyers in June. - See more at: http://www.worldpropertychannel.com/europe-residential-news/uk-first-time-homebuyers-uk-housing-market-council-of-mortgage-lenders-home-loans-7206.php#sthash.9NBkj0Vu.dpuf

The number of first-time home buyers in the U.K. is skyrocketing with confidence returning to the market. 

During the second quarter of 2013, 68,200 first-time homebuyers purchased homes, marking the highest quarter for first-time buyer lending since 2007, according to data from the Council of Mortgage Lenders released today. 

A total of 25,300 loans were advanced to first-time buyers in June, a 30 percent increase of the 19,400 loans advanced in June last year. 

Along with a higher number of first-time home buyers, the amount they borrowed went up. The average loan was £117,000 in June, an increase from £112,500 in May. The total value of loans advanced to first-time home buyers totaled £3.5 billion in June, a nine percent increase from May and 40 percent higher than last year, according to the data. 

Although home prices have been increasing, mortgage rates are falling, maintaining the affordability for first-time buyer loans. Most first-time home buyers are taking out fixed-rate mortgages. 

"Average fixed rates are significantly lower across two, three and five year products than they were this time last year, and the latest data shows average five year fixed rates at 3.83pc - the best we have seen in recent memory," Brian Murphy of the Mortgage Advice Bureau told The Telegraph. "The Bank of England has signaled that interest rates are likely to favor mortgage borrowers for the foreseeable future, but with rates this good, fixing still looks like the most appealing option for long-term security."

Since 2007 first-time buyers have accounted for 38 percent of all home purchases. The new data shows the group made up 46 percent of buyers in June. - See more at: http://www.worldpropertychannel.com/europe-residential-news/uk-first-time-homebuyers-uk-housing-market-council-of-mortgage-lenders-home-loans-7206.php#sthash.9NBkj0Vu.dpuf

The number of first-time home buyers in the U.K. is skyrocketing with confidence returning to the market. 

During the second quarter of 2013, 68,200 first-time homebuyers purchased homes, marking the highest quarter for first-time buyer lending since 2007, according to data from the Council of Mortgage Lenders released today. 

A total of 25,300 loans were advanced to first-time buyers in June, a 30 percent increase of the 19,400 loans advanced in June last year. 

Along with a higher number of first-time home buyers, the amount they borrowed went up. The average loan was £117,000 in June, an increase from £112,500 in May. The total value of loans advanced to first-time home buyers totaled £3.5 billion in June, a nine percent increase from May and 40 percent higher than last year, according to the data. 

Although home prices have been increasing, mortgage rates are falling, maintaining the affordability for first-time buyer loans. Most first-time home buyers are taking out fixed-rate mortgages. 

"Average fixed rates are significantly lower across two, three and five year products than they were this time last year, and the latest data shows average five year fixed rates at 3.83pc - the best we have seen in recent memory," Brian Murphy of the Mortgage Advice Bureau told The Telegraph. "The Bank of England has signaled that interest rates are likely to favor mortgage borrowers for the foreseeable future, but with rates this good, fixing still looks like the most appealing option for long-term security."

Since 2007 first-time buyers have accounted for 38 percent of all home purchases. The new data shows the group made up 46 percent of buyers in June. - See more at: http://www.worldpropertychannel.com/europe-residential-news/uk-first-time-homebuyers-uk-housing-market-council-of-mortgage-lenders-home-loans-7206.php#sthash.9NBkj0Vu.dpuf

The number of first-time home buyers in the U.K. is skyrocketing with confidence returning to the market. 

During the second quarter of 2013, 68,200 first-time homebuyers purchased homes, marking the highest quarter for first-time buyer lending since 2007, according to data from the Council of Mortgage Lenders released today. 

A total of 25,300 loans were advanced to first-time buyers in June, a 30 percent increase of the 19,400 loans advanced in June last year. 

Along with a higher number of first-time home buyers, the amount they borrowed went up. The average loan was £117,000 in June, an increase from £112,500 in May. The total value of loans advanced to first-time home buyers totaled £3.5 billion in June, a nine percent increase from May and 40 percent higher than last year, according to the data. 

Although home prices have been increasing, mortgage rates are falling, maintaining the affordability for first-time buyer loans. Most first-time home buyers are taking out fixed-rate mortgages. 

"Average fixed rates are significantly lower across two, three and five year products than they were this time last year, and the latest data shows average five year fixed rates at 3.83pc - the best we have seen in recent memory," Brian Murphy of the Mortgage Advice Bureau told The Telegraph. "The Bank of England has signaled that interest rates are likely to favor mortgage borrowers for the foreseeable future, but with rates this good, fixing still looks like the most appealing option for long-term security."

Since 2007 first-time buyers have accounted for 38 percent of all home purchases. The new data shows the group made up 46 percent of buyers in June. - See more at: http://www.worldpropertychannel.com/europe-residential-news/uk-first-time-homebuyers-uk-housing-market-council-of-mortgage-lenders-home-loans-7206.php#sthash.9NBkj0Vu.dpuf