First-time buyer levels remains strong despite fall

The number of first-time buyers entering the UK housing market fell by two per cent in October, according to new research from estate agent Spicerhaart.

However, first-time buyers now account for 40 per cent of all house purchases, slightly above the six month average of 38 per cent.

"The proportion of first-time buyers is significant and still strong," said Steve Cox, operations director of Spicerhaart Financial Services.

"Despite some affordability constraints most still aspire to own a property and are entering the market encouraged by the held interest rates.

The long-term picture is also positive according to the organisation.

"The small drop in the group last month is attributable to a slight seasonal lull rather than buyers abandoning the property market altogether, and as such we do not expect a significant downturn," continued Mr Cox.

"The high six month average of 38 per cent indicates first-time buyers remain confident and under the backdrop of stabilising house prices are looking to buy before prices start to go up again."

First-time buyers are essential to the UK property industry.(is this a quote or you?)

"The figures are also encouraging as these buyers are a vital driving force in the housing market and essential for a healthy mortgage industry."

The research also found there has been an increase in the number of homeowners remortgaging their property.

There has been an increase of 35 per cent in the number of people remortgaging their property since April, with 24 per cent of mortgage holders doing so.

"The increase in borrowers choosing to remortgage their property is largely due to the tightening of the purchase market as a result of the credit crunch," continued Mr Cox.

"Furthermore, consumers coming to the end of fixed rate deals have contributed to the shift as they look to secure competitive deals, of which there are plenty of opportunities."