First-time 
buyers lead 
mortgage surge

House purchase lending in January was 11 per cent higher than the same month a year ago, with much of the surge being driven by first-time buyers, the Council of Mortgage Lenders (CML) said.

Experts said that the housing market had reached a “crucial stage” in its tentative recovery, which the Government must encourage further in next week’s Budget.

The CML figures showed that despite a seasonal dip compared with December, 38,300 loans were advanced to home buyers in January worth £5.7bn, marking an 11 per cent year-on-year increase.

These figures marked the strongest start to a year since 2008, when 47,800 loans were taken out.

For the third month in a row, first-time buyers accounted for 42 per cent of all house purchase loans.