Alas, a glimmer of hope in the mortgage market as the Council of Mortgage Lenders report a slight increase in lending activity. According to the latest reports the number of mortgages sold had a month on month increase of 4% in February. This brings the total number of mortgages being sold in February to 24,300 worth an estimated £3.1 billion in lending. One of the segments that benefited from this uplift was first time buyers who picked up 9,400 loans during February. This coincides with a number of financial institutions lowering their loan to value requirements and creating more money to help first time buyers get on the housing market.

Interestingly, the various house price indices report a mixed message when it comes to house price movements. According to the Nationwide House Price Index, house prices increased by 0.9% in the month of March. While on the other hand the Halifax House Price Index reported a1.9% fall in house prices in March. So although there are signals of good news it is not enough to suggest that a recovery is on its way.

The combination of lower house prices, the lowest interest rate in British history and banks making an attempt to offer good deals to borrowers will all work in favour of the first time buyer market. Not to forget the stamp duty holiday which is currently in force on houses with a sale value of less than £175,000 make it a tempting environment for anyone looking to step onto the ladder.