FTB transactions see 27% annual drop

However the research from Your Move and Reeds Rains shows that the average purchase price of first-time buyer properties was £154,041 in June, a figure unchanged compared to a year ago and down 0.9% on a three-month basis.

First-time buyer deposits averaged £25,926 in June, 1% less than a year before, but 2.8% higher than three months ago and 2.1% higher than last month’s average.

Yet the latest Mortgage Monitor from e.surv revealed that the total number of high LTV house purchase approvals has rocketed 18% between May and June of this year and has grown 6% compared to June 2014, suggesting that the number of first-time buyer completions should return to growth over the summer months.

Adrian Gill, director of Your Move and Reeds Rains, commented:

“First-time buyer numbers have had a disappointing month, with little sign of the anticipated post-election bounce. Many would-be first-time buyers deferred their decision until after the Chancellor’s Summer Budget, one which essentially laid out the Government’s economic and housing policy for the next few years.

"However, deposit costs continue to rise – while this may be frustrating for those diligently saving to put a foot on the ladder, it is a positive reflection on the growth of wages and home values. More positively still, the surge in high LTV house purchase approvals should mean a rise in completions in the coming months. It’s a matter of waiting for the emerging signs of growth to filter through the property chain.”