Five questions answered on the rise in first time buyers

How big is it and what does it mean?

There has been a big boost in the number of mortgages taken out by first time buyers, according to the Council of Mortgage Lenders (CML). We answer five questions on the rise.

How many more first time buyers are there?

According to the CML, the number of mortgages taken out by first time buyers has risen by 42per cent in a year.

What has caused this surge in first time buying? 

Mortgage brokers say it is proof that banks are lending again to first time buyers following government attempts to support the housing market.

Government schemes such as Funding for Lending, which offered £80 billion to banks to boost mortgage and business lending, have increased high loan-to-value lending.

The Help to Buy scheme launched in the March Budget, which is designed to help borrowers with small budgets, has also bolstered loans.

How many first time mortgages were actually approved this year compared to last?

In May, 25,100 first time buyer loans were approved, a rise of 29 per cent from April, and 42 per cent higher than May last year.

At its lowest figure just 8,500 loans were issued to first time buyers in January 2009.

A separate survey released today by e.surv reveals that June showed a total of 7,046 loans were approved to borrowers with deposits of 15 per cent or less – up from 4,790 loans at this level in June.

Total lending to home-buyers was up 23 per cent year-on-year, e.surv found. 

What are people saying?

Richard Sexton, director of e.surv, told The Telegraph: “Last year the lending market was thorny for first-time buyers. But over the last year, lenders have softened the process for them to get a house purchase loan.

“Buoyed by Funding for Lending [the Government scheme], and having had enough time to adjust to regulatory requirements and balance sheet restructurings, banks are more prepared to lend at these levels.”

What next – will the figure continue to rise?

Possibly. The Bank of England’s Credit Condition Survey suggests lenders are planning to increase their lending levels to buyers with a 10 per cent deposit in the third quarter of the year.

Messrs Cameron and Clegg accompany a first time buyer around her new neighbourhood. Photograph: Getty Images.

Heidi Vella is a features writer for

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Jeremy Corbyn challenged by Labour MPs to sack Ken Livingstone from defence review

Former mayor of London criticised at PLP meeting over comments on 7 July bombings. 

After Jeremy Corbyn's decision to give Labour MPs a free vote over air strikes in Syria, tonight's Parliamentary Labour Party (PLP) meeting was less fractious than it could have been. But one grandee was still moved to declare that the "ferocity" of the attacks on the leader made it the most "uplifting" he had attended.

Margaret Beckett, the former foreign secretary, told the meeting: "We cannot unite the party if the leader's office is determined to divide us." Several MPs said afterwards that many of those who shared Corbyn's opposition to air strikes believed he had mishandled the process by appealing to MPs over the heads of the shadow cabinet and then to members. David Winnick declared that those who favoured military action faced a "shakedown" and deselection by Momentum activists. "It is completely unacceptable. They are a party within a party," he said of the Corbyn-aligned group. The "huge applause" for Hilary Benn, who favours intervention, far outweighed that for the leader, I'm told. 

There was also loud agreement when Jack Dromey condemned Ken Livingstone for blaming Tony Blair's invasion of Iraq for the 7 July 2005 bombings. Along with Angela Smith MP, Dromey demanded that Livingstone be sacked as the co-chair of Labour's defence review. Significantly, Benn said aftewards that he agreed with every word Dromey had said. Corbyn's office has previously said that it is up to the NEC, not the leader, whether the former London mayor holds the position. In reference to 7 July, an aide repeated Corbyn's statement that he preferred to "remember the brilliant words Ken used after 7/7". 

As on previous occasions, MPs complained that the leader failed to answer the questions that were put to him. A shadow minister told me that he "dodged" one on whether he believed the UK should end air strikes against Isis in Iraq. In reference to Syria, a Corbyn aide said afterwards that "There was significant support for the leader. There was a wide debate, with people speaking on both sides of the arguments." After David Cameron's decision to call a vote on air strikes for Wednesday, leaving only a day for debate, the number of Labour MPs backing intervention is likely to fall. One shadow minister told me that as few as 40-50 may back the government, though most expect the total to be closer to the original figure of 99. 

At the end of another remarkable day in Labour's history, a Corbyn aide concluded: "It was always going to be a bumpy ride when you have a leader who was elected by a large number outside parliament but whose support in the PLP is quite limited. There are a small number who find it hard to come to terms with that result."

George Eaton is political editor of the New Statesman.