The proportion of FTBs paying stamp duty has risen from 48 per cent to 56 per cent in the space of a year, according to the CML latest monthly statistics. And only 15 per cent of home movers escaped the tax in August, compared with 21 per cent a year earlier.
The CML data also revealed how first-time buyers are continuing to struggle in the current market. They accounted for just 35 per cent of the total number of house purchase loans in August, their lowest proportion since the current survey started in April 2005. More encouragingly, their numbers have been rising in absolute terms - and at 38,100 were actually more robust than the 34,900 in August last year. The age of a typical first-time buyer has remained consistent at 29 for the past year.
In terms of affordability, there was a worsening for first-time buyers in August. While the median first-time buyer mortgage remained at 90 per cent of the property value, typical income multiples rose to 3.27, up from 3.24 in July and 3.08 in August last year. The proportion of income that first-time buyers spent on their mortgage interest payments rose to 17.1 per cent, the highest level since February 2005, and up from 16.7 per cent in July and 16.5 per cent in August last year. The average size of a first-time buyer loan increased at twice the rate of the increase in average first-time buyer income.
Across the market as a whole - first-time buyers, movers and people remortgaging - fewer loans were taken out at fixed rates. While still accounting for 60 per cent of new loans, the popularity of fixed rates has waned markedly since its peak at 76 per cent in November and December last year. Trackers are rising in popularity, accounting for 25 per cent of new loans in August, their highest proportion on record.
Commenting on the market, CML director-general Michael Coogan said: "Interpreting these figures suggests that borrowers are falling into two camps. There are those who believe rates are near their peak, and who are confident enough to risk a short-term rise in rates for the pricing benefits offered by discounts and trackers. And there are those who want greater financial certainty, who may well be increasingly choosing longer-term periods over which to fix their rate.
"Overall affordability has worsened a little, especially for first-time buyers. Over the period of a year, small monthly changes can nevertheless be significant - as the rise in the proportion of mortgage borrowers required to pay stamp duty shows. For the rest of this year, we expect some moderation in activity although the market is continuing to outperform our earlier forecasts."
