Despite a drop in the proportion of small-deposit lending, the latest First Time Buyer Tracker from Your Move and Reeds Rains reveals that first-time buyer transactions in April reached a two-year high – with 32,300 completed. This was 14.9% higher on a monthly basis than the 28,100 transactions in March.

Meanwhile, large-deposit lending to borrowers with a deposit of 60% or more increased proportionally to comprise 30.7% of total borrowing, up annually from 28.2% in May 2015.

Regional snapshot: Midlands makes little yearly progress in small-deposit lending

The proportion of small-deposit lending in the Midlands stood at 21% in May, falling 3 percentage points from 24% in April. A year ago, small-deposit borrowing within the region accounted for 20% of home lending, leaving just a 1 percentage point rise across the last twelve months. Despite this lack of progress, the Midlands remains above the UK average of 18% for small-deposit lending.

RegionProportion of small-deposit loans

(May 2016)Proportion of small-deposit loans

(April 2016)Northern Ireland30%30%Yorkshire28%28%North West28%28%Midlands21%24%UK Average18%19%Scotland17%18%Eastern England16%16%South/ South Wales16%17%South East15%14%London10%9%Only London and the South East saw proportional increases in small-deposit lending, rising to 10% and 15% respectively. Meanwhile, the proportion of small-deposit borrowing in Northern Ireland stayed at 30%, continuing as the most first-time buyer friendly region in the UK.