The housing market in Northern Ireland got a kick in the first quarter of the year from first time buyers.  According to the Council of Mortgage Lenders in Northern Ireland first time buyers made up 60% of the total number of house purchase loans for the first three months of the year.  This was a 58% increase over the last quarter of 2011 and revealed the highest proportion of first time buyers since 2001.  Of the first time buyers there were 75% that did not benefit from the stamp duty holiday since their property purchase was under the lower end of the threshold of the purchase price able to take advantage of the 1% savings. 

The average first time buyer in Northern Ireland took on a mortgage debt of £73,350 in the first quarter of the year which is down 9% from the £80,495 average recorded a year earlier.  The average borrowed was 83% of the property’s value in the first quarter which is slightly down from the 84% level in the last quarter of 2011.  It was however an increase over the 81% recorded in the previous year.

Derek Wilson, chair of the CML in Northern Ireland, remarked, “Reduced property prices and lower deposit requirements mean that first-time buyers in Northern Ireland are finding it easier to get a foot on the ladder.

“Although we saw an increased proportion entering the market in the first three months of the year, the low property volumes seen in Northern Ireland make percentage changes more pronounced. We will be watching future trends closely since evidence from the UK suggests that a period of decreased lending tends to follow the end of stamp duty concessions. However, the impact in Northern Ireland may be lessened by the lower property prices we are now seeing in the first-time buyer sector.

“Against a backdrop of economic uncertainty and the assembly’s housing strategy consultation this spring, we look forward to working cooperatively with all players in the housing market to develop housing solutions that work for all.”