First-time buyer mortgage applications 'on the rise'

Date:Thursday 27th May 2010
Author: Susanna Kavka

The Royal Institution of Chartered Surveyors (Rics) has highlighted the impact on first-time buyers of the previous government's stamp duty threshold policy.

Simon Rubinsohn, chief economist at the organisation, explained there has already been a notable change in the Rics housing market survey, with many areas of the country showing increased enquiries from first-time buyers.

However, he noted that this pattern does not hold true for the whole country, since the £250,000 stamp duty threshold is not high enough for some first-time buyers to benefit.

Mr Rubinsohn explained: "By way of contrast, London and the South East, where the entry level for many is above the £250,000 threshold, actually saw a drop in interest in April."

He made his remarks after figures released by the British Bankers' Association (BBA) showed mortgage loans for house purchases increased slightly in April.

BBA statistics director David Dooks suggested uncertainty regarding government policies is currently affecting consumer confidence.