First time buyer transactions rose by 28% in May to 16,170 following a sharp decline in April in the wake of the return of stamp duty for first time purchases, the latest figures from LSL Property Services.

The average price of a first time buyer property has also risen by 4.3% to £127,493 and the average LTV fell from 81.1% to 79.7%.

Wealthier buyers pushed up first time buyer prices in May and the affordability of both deposits and mortgage repayments improved on a monthly basis. Buyers had to pay less for properties in May than their counterparts in February and March who were pushed to complete before the stamp duty deadline.

The report also shows that deposits in May represented 71.6% of the average first time buyer’s annual income, down slightly from 71.8% in the previous month, while mortgage repayments account for 19.6%, down from 21.6% in April.

On an annual basis the affordability of the average house purchase deposit has improved, while the affordability of mortgage payments improved from 22% of the average first time buyer’s income in May 2011. The average mortgage repayment rate for first time buyers fell in May from 5% to 4.9% and the average deposit rose to £25,839.

The majority of first time buyers receive help from their families to fund a purchase. Only 39% of first time purchases were entirely self funded, while 57% received help in the form of inheritance, or direct assistance with the deposit or mortgage payments. Only 0.6% said they received help from a government first time buyer scheme.

On average, first time buyers expect house prices to rise by 2.1% in the next year, with 47% stating they expected no change and 32% stating they thought prices would rise by up to 5%. First time buyers expect on average to remain in their properties for an average of 6.9 years. Only 3% of first time buyers expect to stay in a property for less than two years.