The number of first-time buyers taking out a loan in London for a house purchase increased by 19% during Q2 2013 compared to the previous quarter and accounted for 11,200 loans according to the Council of Mortgage Lenders (CML).

First-time buyers in London make up a larger proportion of house purchase loans compared to the UK overall as 56% of house purchase loans were to first-time buyers in London compared to 46% in the UK overall.

Paul Smee, CML director general, said: "Mortgage lending in London has followed a similar pattern to the rest of the UK with strong house purchase activity this quarter, strengthened particularly by first-time buyer activity.  

"Total lending for house purchase has also increased this quarter upon last and from a year ago which suggests increasing confidence that economic conditions are becoming more favourable." 

Typical loan amounts have also increased, rising by 6.9% in the second quarter compared to 2.9% for the UK overall with £2,490m advanced to borrowers in Q2, a 33% increase on Q1 2013 and a 47% increase compared to Q2 2012.

Although first-time buyers took out larger loans (on average £192,600 compared to £183,900 in Q2 2012) the affordability was almost unchanged thanks to higher incomes and falling interest rates, resulting in average first-time buyers spending 20.8% of their income on mortgage payments compared to 21% in Q1 2013.

Total house purchase lending in London increased due to lending to first-time buyers and showed an increase of 16% compared to Q1 and 18% compared to Q2 2012. There were 20,100 house purchase loans advanced in London worth £5.1bn in total, a 23% rise in value compared to Q1 2013 and up by 20% compared to Q2 2012.