Under embargo until 00:01 Friday 27th February 2015February 2015

Stamp duty changes push first-time buyerdeposits to 18 month high January sees average first-time buyer deposit rise to 29,127, 15% higher than a year ago Average first-time buyer house purchase price tops 160,000 for first time on record First-time buyer completions fall 19% on a monthly basis, due to dip in applications over ChristmasMonthly TransactionsAverage Purchase PriceAverage LTV

January 201521,200160,30481.8%

December 201426,100154,81582.4%

1 month change-18.8%+3.5%-0.6 (from 82.4%)

3 month change-26.1%+8.4%-1.1 (from 82.9%)

1 year change-4.1%+11.8%-0.5 (from 82.3%)

First-time buyer deposits have climbed 15% in a year to average almost 30,000, driven by lower stamp duty bills for new buyers, according to the latest First Time Buyer Tracker from Your Move and Reeds Rains.The average first-time buyer deposit was 29,127 in January, up 7% compared to December 2014 and 15% higher than 25,314 in January 2014. First-time buyers are saving the largest amount for their deposit since July 2013, eighteen months ago, as savings from Decembers stamp duty changes take effect.This has also helped drive rising purchase prices for first-time buyer homes, which have climbed to a new record. New buyers paid an average of 160,304 in January, 12% more than 143,343 twelve months ago.Revisions to the stamp duty slab system have reduced the upfront costs for many first-time buyers, allowing them to divert that cash into a deposit fund. First-time buyers paying the average purchase price would have been liable for stamp duty fees of around 1,600 before the graduated system was implemented, but this would now have been reduced to 700 saving them roughly 900.Simultaneously, as wages start to see a significant pick-up in real terms, growing purchasing power is reflected in the average first-time buyer LTV. Loan-to-value ratios have fallen 1.1 percentage points over the last three months, suggesting deflation and growing wages are allowing first-time buyers to put together slightly larger deposits.Despite this, the average loan-to-income ratio for first-time buyers has risen on an annual basis. On average, deposits now represent 75.4% of a first-time buyers income, compared to 70.6% a year ago.Adrian Gill, director of estate agents Your Move and Reeds Rains, comments: A fusion of economic factors is alleviating some of the financial burden of forming a deposit. Wages are starting to recover and inflation has fallen to a record low, meaning buyers have slightly more cash to play with day-to-day. And stamp duty fees were slashed for many new buyers when the government reformed the old slab system, freeing up further funds. Its still difficult to save with savings rates tied closely to the low base rate. But its easier to put cash aside than it was a year ago.However, property prices have pushed a new record for first-time buyers, meaning these extra funds are being diverted directly into larger deposits. Putting together a deposit to buy a property remains one of the most arduous tasks for prospective home-buyers, and schemes like Help to Buy are essential to allow the swathes of buyers reliant on higher LTV mortgages to get onto the housing ladder.First-Time Buyer AffordabilityAverage depositDeposit as proportion of incomeAverage mortgage rateMortgage repayment as proportion of income

January 201529,12775.4%3.70%20.8%

December 201427,27870.6%3.70%20.2%

1 month change+6.8%+4.8-0.01+0.6

3 month change+15.5%+9.4-0.48+0.1

1 year change+15.1%+4.8-0.40-0.2

SEASONAL SLOWDOWN STALLS FIRST-TIME BUYER COMPLETIONSThere were 21,200 first-time buyer completions in January 2015 19% lower than 26,100 in December, however this was partly due to a natural seasonal slowing in applications in the run-up to Christmas.Furthermore, a fall in first-time buyer numbers is to be expected between December and January. Completions fell 18% month-on-month in January 2014, 20% month-on-month in January 2013 and 31% month-on-month in January 2012.On a more positive note, the most recent Mortgage Monitor from e.surv chartered surveyors reported a substantial pick-up in higher LTV lending in January, which could translate into a pick-up in first-time buyer completions in the next few months. Loans to higher LTV borrowers grew 20.1% between December and January, with 10,064 loans to borrowers with deposits worth 15% or less of their propertys total value in the first month of 2015.Adrian Gill, director of estate agents Your Move and Reeds Rains, continues: Lending dropped away a little in the run-up to Christmas, but approvals have bounced back a little in January, and demand at the bottom of the market remains strong. After the usual seasonal dip we expect completions in this part of the purchase market to reflect steadier front-end sales activity. Slow and steady progress in line with improving household finances is the order of the day.

REGIONAL DIFFERENCES The average purchase price for first-time buyers in London rose to a new record high of 308,067 in the three months to January 2015 more than three times the average purchase price in Northern Ireland (90,241). On average, Londoners put down a deposit of 73,711 by far the greatest amount of any UK region. This was more than ten times the size of the average first-time buyer deposit in Wales (7,032).RegionAverage Purchase PriceAverage depositAverage mortgageNumber of FTBs*

London308,06773,711234,35611,500

South East206,20430,063176,14115,300

East of England171,28026,377144,9032,700

UK154,60624,759129,84772,600

South West149,09721,197127,9005,900

West Midlands132,45622,478109,9795,800

East Midlands132,10322,144109,9605,100

North West124,48519,484105,0016,900

Yorkshire & Humber117,25117,79699,4555,700

North East116,47719,20097,2772,800

Scotland106,47114,98091,4916,500

Wales104,4967,03297,4642,800

Northern Ireland90,24111,67178,5701,700

Adrian Gill, director of estate agents Your Move and Reeds Rains, concludes: Prices have cooled slightly at the very peak of the London market, but the same isnt true at the bottom end. First-time buyer demand remains strong, boosted by an insatiable appetite for homes. The lure of London as a culture capital and professional hub continues to attract buyers in from other areas of the country, and indeed from other countries despite the higher average price tag.

SEE FULL REGIONAL MAP OVERLEAF

Heat map of first-time buyer purchase prices(Three months to January 2015)*

220,000 +

190,000 - 220,000

160,000 - 190,000

130,000 - 160,000

100,000 - 130,000

Less than 100,000

*This is the total number of FTBs in the three months to January 2015. Based on CML regional data (released 26th November 2014) on the number of FTBs in Q3 grossed up to reflect growth in FTBs recorded by LSL Property Services between Q3 2014 and the three months to January 2015.

Examples of First-Time Buyer Properties**

Scotland

Three bedroom end terrace Auchterarder84,995

North West

One bedroom apartmentHyde54,950

Northern Ireland

Two bedroom houseCarrickfergus22,500

West Midlands

One bedroom flatBromsgrove65,000

Wales

Two bedroom apartmentRhyl65,000

South West

One bedroom flatCamborne85,000

North East

Three bedroom terrace houseFerryhill39,995

Yorkshire & Humber

Two bedroom apartmentHull36,000

East Midlands

One bedroom flatSwadlincote52,500

East Anglia

Two bedroom houseGreat Yarmouth70,000

London

First floor flatSidcup75,000

South East

One bedroom apartmentWaterlooville93,000

** Properties on the market with either Reeds Rains or Your Move estate agents at the time of going to press.

TransactionsAverage Purchase PriceAverage LTVAverage DepositAverage Initial RateMortgage Payments as % of incomeDeposit as % of income

Mar-1115,400126,24480.2%25,0595.0521.6%75.9%

Apr-1114,300130,54880.5%25,4375.0621.9%75.2%

May-1114,900130,47380.4%25,5475.0321.9%75.8%

Jun-1118,600132,50080.8%25,3805.0122.4%75.5%

Jul-1117,700133,18181.1%25,1654.9322.2%74.1%

Aug-1118,300135,00081.5%24,9284.8622.3%72.9%

Sep-1118,500132,81381.7%24,3384.7222.0%72.5%

Oct-1116,800132,50081.1%25,0364.4721.5%75.2%

Nov-1117,600134,37579.9%27,0034.3320.9%80.2%

Dec-1118,700137,25080.1%27,3614.3621.3%80.7%

Jan-1212,900134,91580.3%26,5514.3921.0%78.2%

Feb-1214,000135,00079.7%27,3784.4421.3%81.7%

Mar-1224,400146,79079.9%29,4534.5622.5%84.2%

Apr-1212,300123,74479.9%24,8544.6620.9%77.5%

May-1217,700131,25080.5%25,5744.8321.7%76.3%

Jun-1219,300137,34480.4%26,8924.9222.6%79.1%

Jul-1218,000135,80279.9%27,2834.9221.6%78.1%

Aug-1220,400137,25079.5%28,1364.9222.0%81.4%

Sep-1217,600135,00081.3%25,2594.8622.3%74.2%

Oct-1220,100135,00081.3%25,2654.8122.1%74.1%

Nov-1221,700134,07979.1%28,0434.7221.2%82.3%

Dec-1219,500136,99479.9%27,5224.6121.6%80.6%

Jan-1315,700133,75079.9%26,9444.4420.8%79.2%

Feb-1315,700132,81379.8%26,8754.3320.6%79.6%

Mar-1319,500135,93880.6%26,4064.2920.8%76.7%

Apr-1318,200135,80280.4%26,6244.2420.3%76.4%

May-1322,900137,34180.1%27,3384.1920.0%77.1%

Jun-1324,400146,25079.6%29,8424.0620.7%83.2%

Jul-1324,200144,29079.5%29,6083.9920.2%82.6%

Aug-1326,500146,66780.3%28,8933.9620.6%80.1%

Sep-1323,000146,71980.6%28,4123.9320.9%79.7%

Oct-1326,400146,60581.1%27,7163.9420.8%77.0%

Nov-1326,700145,31381.3%27,1733.9420.9%76.5%

Dec-1326,800150,87582.1%26,9614.0521.8%74.7%

Jan-1422,100143,34382.3%25,3144.1021.0%70.6%

Feb-1422,300143,07282.7%24,7874.0120.9%69.0%

Mar-1424,200148,43883.5%24,5524.0022.0%69.0%

Apr-1424,800142,85783.6%23,5004.0520.8%64.3%

May-1427,100142,94183.2%23,9784.0920.8%65.7%

Jun-1429,100154,68883.0%26,3054.1622.3%70.8%

Jul-1428,700148,20482.9%25,3354.1920.7%66.0%

Aug-1426,900149,25682.2%26,6354.2120.8%69.7%

Sep-1426,200151,80782.7%26,2784.2521.1%67.9%

Oct-1428,700147,85782.9%25,2174.1920.7%66.0%

Nov-1425,300149,09282.8%25,6593.9220.3%67.3%

Dec-1426,100154,81582.4%27,2783.7020.2%70.6%

Jan-1521,200160,30481.8%29,1273.7020.8%75.4%

ENDS

Press contactsTora Turton, The Wriglesworth Consultancy, v.turton@wriglesworth.com, 020 7427 1445Adam Kirby, The Wriglesworth Consultancy, a.kirby@wriglesworth.com, 020 7427 1440

MethodologyLSL uses the extensive monthly data from registered first-time buyers in its estate agency brands Your Move and Reeds Rains to update the CMLs first-time buyer data before the CMLs RMS data is published. The term first-time buyer is here denoted by the purpose of a buyers registration, rather than their LTV. LSL LTV data has been applied to CML price purchase data to calculate deposit and affordability information. Sentiment and salary data are derived from a survey conducted by LSL. The figures are not mix or seasonally adjusted, and are subject to revision as more data becomes available.This First Time Buyer Tracker has been prepared by The Wriglesworth Consultancy for LSL Property Services. It has been compiled using information extracted from LSLs management information. The copyright and all other intellectual property rights in the First Time Buyer Tracker belong to LSL. Reproduction in whole or part is not permitted unless an acknowledgement to LSL as the source is included. No modification is permitted without LSLs prior written consent.Whilst care is taken in the compilation of the First Time Buyer Tracker, no representation or assurances are madeas to its accuracy or completeness. LSL reserves the right to vary the methodology and to edit or discontinue the First Time Buyer Tracker in whole or in part at any time.

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