After suffering a post-stamp duty holiday slump in April, figures for first-time buyer transactions rose by 28% the following month to 16,170.
The average purchase price rose from April’s figure of £122,188 to £127,493, although only 0.6% of buyers said they had received any form of help from a government-backed scheme
The average loan-to-value ratio fell from 81.1% to 79.7% in the same period, the lowest LTV levels since December 2011.
The survey also found that the average age of a first-time buyer in May was 28, with an income of around £36,000. Two-bed flats and houses remain the most popular target for first-time buyers.
99.6% of people surveyed living in rented property said they wished to purchase a house. However only 25% said they expected to buy within a year, while 50% stated they would make a house purchase within the next five years.
The inability to raise a cash deposit, the return of stamp duty and high transaction costs were given as reasons potential buyers were unable to buy.
David Newnes, director at LSL Property Services, said: “The market is now being driven by buyers with enough money to absorb the additional tax burden.
“While the number of tenants able to leave the private rental sector remains historically low, those that can are taking the opportunity to enjoy the currently highly affordable mortgage rates on offer.
“With economic fears growing both inside and outside the UK, it’s highly unlikely we’re going to see a base rate rise in the foreseeable future, meaning tracker rate deals are currently offering very low-cost access to finance.
“When making loans to buyers with large deposits, lenders have shown they are happy to let borrowers take advantage.”
“Buyers clearly still feel buying a house is a good investment, which makes it all the more frustrating that the need to save a large chunk of cash and growing transaction costs are the main reasons they can’t take the plunge.”
