First time buyer lending down in July

First time buyers are facing "tighter lending criteria" for mortgages that is deterring them from house purchases, according to the Council of Mortgage Lenders (CML).

The latest house price survey from the CML showed that the volume of house purchase loans fell by 51 per cent in July compared to the same month last year.

Although overall lending figures remained unchanged compared to the previous month, the number of first time buyers fell by five per cent over the same period.

According to CML director general Michael Coogan, it is becoming harder for first time buyers to get onto the housing ladder.

He said: "The stamp duty and shared equity measures announced by the government last week will be helpful to those first-time buyers looking to enter now, but many may be waiting for house prices to stabilise."

However, loans for to those moving home were up by three per cent compared to June, although remained 53 per cent lower than in July 2007.