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 Nridigital.com

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Supreme Court Article 50 winner demands white paper on Brexit

The Supreme Court ruled Parliament must be consulted before triggering Article 50. Grahame Pigney, of the People's Challenge, plans to build on the victory. 

A crowd-funded campaign that has forced the government to consult Parliament on Article 50 is now calling for a white paper on Brexit.

The People's Challenge worked alongside Gina Miller and other interested parties to force the government to back down over its plan to trigger Article 50 without prior parliamentary approval. 

On Tuesday morning, the Supreme Court ruled 8-3 that the government must first be authorised by an act of Parliament.

Grahame Pigney, the founder of the campaign, said: "It is absolutely great we have now got Parliament back in control, rather than decisions taken in some secret room in Whitehall.

"If this had been overturned it would have taken us back to 1687, before the Bill of Rights."

Pigney, whose campaign has raised more than £100,000, is now plannign a second campaign. He said: "The first step should be for a white paper to be brought before Parliament for debate." The demand has also been made by the Exiting the European Union select committee

The "Second People's Challenge" aims to pool legal knowledge with like-minded campaigners and protect MPs "against bullying and populist rhetoric". 

The white paper should state "what the Brexit objectives are, how (factually) they would benefit the UK, and what must happen if they are not achieved". 

The campaign will also aim to fund a Europe-facing charm offensive, with "a major effort" to ensure politicians in EU countries understand that public opinion is "not universally in favour of ‘Brexit at any price’".

Pigney, like Miller, has always maintained that he is motivated by the principle of parliamentary sovereignty, rather than a bid to stop Brexit per se.

In an interview with The Staggers, he said: "One of the things that has characterised this government is they want to keep everything secret.”

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.