Housing market recovery 'dependent on first-time buyers'

Posted: 13 Apr 2010 09:54:41 GMT

The recovery of the UK housing market is dependent on movement from first and next-time buyers, it has been suggested.

Graeme Yorston, chief operating officer of Welsh building society Principality, says: "The introduction of a series of measures to help first time buyers get the key to their own home is critical to the future of the market."

His comments come in response to new figures from the bank, which show there has been a 187 per cent increase in the number of homeowners securing a mortgage deal in the first quarter of 2010.

Lending for the month of February amounted to £143 million, marking Principality's biggest ever volume of home loan applications.

In March 24th's Budget announcement Alistair Darling stated that the stamp duty threshold for first-time buyers would be doubled from £125,000 to £250,000, a move which is hoped to allow nine out of ten purchasers in this category to avoid paying the tax altogether.

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