The London-based brokerage has revealed an increased in the percentage of first-time buyers from 37 per cent in the first quarter of 2004 to 45 per cent in 2005.
This represents an increase in the actual number of mortgages written for first-time buyers by the brokerage despite the slowdown in the mortgage market.
According to Andy Pratt, chief operating officer of Alexander Hall, many first-time buyers had held back during 2004 because of predications by some analysts of a housing crash.
“I think that these buyers have spent the Christmas period thinking about their options and have decided that the predicted crash will not happen and with the market slowing now is a good time to take the first step on the property ladder,” he said.
Linda Will, managing director of Accord Mortgages, said she had noticed an increased interest in 100 per cent mortgages, especially for new-build properties.
“At the end of last year the new-build market was pretty dead but now that things are more sensibly priced we are seeing greater demand from first-time-buyers,” she said.
Russell Jervis, managing director of haart estate agents, said: “Following last year’s interest rate rises many first-time buyers were priced out of the market as mortgage rates were increased to reflect the higher cost of borrowing.
“First-time buyers have welcomed the resulting house price deflation as sellers have had to drop prices to remain competitive.”
