But second steppers, that is current home owners who are seeking to move up to a bigger property are not yet benefitting from the new trend, according to new research.
Overall the number of first time buyers in the UK has increased by 75.7% on an annual basis but this figure is much higher in London which has seen a rise of 102.4%, the data shows.
Nationally first time buyers represent 42.2% of all mortgages written by Just Mortgages, a 7.6% increase on August 2012 and their average age is 32.1 years, the youngest since March 2012.
The data also shows that first time buyers are now having to find lower deposits, at £34,997 around 3% lower than last year.
All new buyers are up 31.1% nationally on last year and in London up 61.1% but there are fewer properties coming onto the market, down 0.8% annually and in London down 9.9%.
‘First time buyers are back on the scene. This is the best they have had it since the economic crash,’ said Paul Smith, chief executive officer of haart estate agents which has a network of over 100 branches.
‘Their registrations are up 75.7% annually across the UK and have more than doubled in London. This is in part due to the back-log of people who decided to rent over the last five years rather than buy, but are now benefiting from improved lending conditions,’ he explained.
‘The deposits they are putting together are more affordable, down 3% annually and first time buyers have not been younger since last year. The second phase of the Help to Buy scheme in January 2014 will place the aspiration of home ownership within the reach of many more,’ he added.
He believes that second steppers will also soon benefit from this tsunami of first time buyer demand. ‘Their properties will be snapped up in record time and our branches are currently achieving 98.9% of asking prices. Potential sellers should recognise these perfect conditions,’ said Smith.
He pointed out that there is an underlying ‘niggle’ about a property bubble but said there is a distinct difference this time which that lending is more responsible. ‘It is highly unlikely that we will see a return to the 100% LTV mortgage and extreme sub-prime market,’ he added.
