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Number of first time buyers in UK more than doubled in first two weeks of year

The National Association of Estate Agents said that 22.5% of registered buyers were first time buyers, up from 10% in December and 14.5% in January 2008.

'This figure is highly significant in terms of demonstrating an increase in consumer confidence,' said Peter Bolton-King, CEO of the NAEA.

The NAEA regards first time buyers as the bedrock of a healthy housing market. 'During the boom years we saw the number of first time buyers as a proportion of buyers rise as high as 37%, and I believe that an average of 25% is indicative of a healthy and confident market,' he explained.

'While the figure of 22.5% is definitely not a sign that the housing sector is out of the woods yet, it does suggest that those infamous green shoots of recovery may not be as far off as first thought,' he added.

Figures from a national survey of the NAEA's 14,000 members also demonstrate that second time buyers are determined to try to find a bargain.

Agents reported a flurry of activity in the first two weeks in January, with an average of ten new sellers per agent. Agents made an average of four sales in the first two weeks of January compared to a monthly average of six in November and December 2008.

Over half, 55%, of those looking to buy in the first two weeks of January were second time buyers. Buy to let investors made up 22% of the market. Real estate agents believe this shows that bricks and mortar remains a sound investment, particularly with interest rates falling.

'These statistics are evidence that consumer confidence is slowly being restored but I must counter this by saying that unless lenders respond to consumer demand, then any green shoots will wither and die on the branch,' concluded Bolton-King.

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