The value of the first time-buyer market was more subdued in April, where the value of FTB applications totalled £6.2bn. This compares to £8bn in March which was up  up 42% from £5.6bn in February.

Data supplied by CACI and analysed by First Direct reveals that though the April figure is down month-on-month, it is the second highest amount recorded since September 2022, highlighting an improved picture in recent months.

The overall mortgage market, which also captures home movers and re-mortgages, was worth a total of £26.6bn in March – the first time it has passed the £20bn mark since September last year and an £8.9bn increase on the month before. In April 2023, it was worth £19.8bn.

First Direct head of mortgages Carl Watchorn comments:“Typically, March and April tend to be some of the busiest months of the year when it comes to first-time buyer activity. March usually sees a sharp spike in applications after what is often a quiet start to the year.

“It’s really encouraging to see the market recovering during March and April to a level of applications not seen since September 2022. A closer look at this data also reveals that the value of first-time buyer loans has doubled since fourth quarter last year; a segment fundamental for a vibrant housing market.”

The average first time buyer loan reached £211,766 in April 2023, a rise of more than £17,000 since the start of the year – representing an 8.8% increase.

This is the highest figure seen since July 2022, where the average first-time buyer loan was worth £212,153.

Other home buyer categories have also seen an increase, with home mover loans up £14,200 since January and the re-mortgage up by £9,500.

However, the first time buyer average loan value saw the most dramatic increase this year.

Watchorn is encouraged by the latest data: “The news that average first time buyer loans are increasing is likely indicative of increased confidence in the sector, although it does once again highlight the challenge faced by many young people trying to bridge the gap between average income and the average house price”.

He adds: “It’s also important to consider that the average first-time buyer house deposit is now more than £60,000. Faced with higher rates than we’ve seen in a number of years, many buyers will be looking to save up as big a deposit as possible in order to secure a cheaper rate against a lower LTV product.”

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