Mortgage lending saw a lackluster span of activity immediately following the summer months, but as 2012 draws to a close that could be changing for the best.  First time buyer lending increased during the month of October breathing new signs of life into a struggling market.  The Council of Mortgage Lenders processed more than 19,000 loans during the month which equates to an increase year on year of slightly less than 20%.  It is also an increase of almost 15% over the previous month.

The first time buyer demographic is an important one within the UK housing market.  Higher activity by the group creates sustainability within the housing market.  This could not be any truer than right now.  With the EU financial status still up in the air, consumer confidence remains low and hesitation by many to move on a property is holding up further recovery.

Paul Smee, CML director, commented on the recent figures regarding first time buyers, saying: “If the incremental improvements in house purchase lending that we are currently seeing persist as we expect them to, then next year should feel a more stable and positive year in the housing and mortgage markets.”

Moneysprite director Ashley Brown commented on the latest encouraging data to be released, saying: “The problem for first time buyers has been how to cobble enough money together for a deposit, but these figures suggest they are finding a way to boost their deposit funds, despite having to meet higher living costs.”

Brown continued: “Certainly the Bank of Mum and Dad is helping to boost deposit funds but there are a lot of first time buyers out there who have been putting away money every month for quite a few years. That's starting to show.”