First-time buyer rate soars 15%

The increase in the number of first-time buyers is mirrored by a rise in the value of deposits. This is due to the rising price of homes, according to a report by LSL Property Services.

• 22,000 transactions by first-time buyers in April (up 15% from March, and almost 80% from April 2012)
• 9,600 more first-time buyers secured a mortgage in first third of 2013 than in 2012
• 45% of first-time buyers still say that saving for a deposit is the biggest barrier to buying

• Average deposit was £27,178 (up 9.4% from April 2012)
• Average purchase price of homes for first-time buyers rose 2% between March and April to a high of £138,632.

(LSL Property Services)

The government's Help to Buy housing scheme is seeing 500 reservations for purchase every week, according to new figures from the Home Builders Federation.

The industry report also records that 4,000 homes have been reserved in two months under the scheme.

It comes at the same time as a separate report shows that the number of first-time buyers soared to 22,000 in the month of April, when the scheme was introduced.

Read: Report: Number of first-time buyers soars 15% in April

The number of first-time buyers soared to 22,000 in April as buyers take advantage of government schemes to lower the threshold of home ownership, a new report has found.

The figure is up by 2,900 - or 15% - from the previous month.

The jump in transactions coincides with the introduction of the Help to Buy scheme which allows people to buy homes with deposits of just 5% - something that had become almost unheard of.

Such schemes have led to lower rates and a wider choice of mortgages, according to estate agency owner LSL Property Services which published the report.

The Help To Buy scheme has been criticised by some for raising house prices and for emulating the American housing market which is largely underwritten by the state.

Read: Sir Mervyn King issues Help to Buy scheme warning