There is still life in the housing market, according to a leading analyst at mortgage lender Bradford & Bingley.
David Bitner's comments follow figures from the Council of Mortgage Lenders showing that home loans reached a record level last month.
Mortgage lending in July totalled a record £29.2 billion.
"These results highlight that the housing market still has some life in it, with lending up 13 per cent from the same time last year," Mr Bitner said. "The figures were also driven by the purchasing market so this only further emphasises the point."
However he added: "The very low number of first time buyers entering the market has now become an issue of real concern."
Throughout the whole of 2004 to date, an average of only 28 per cent of first time buyers have entered the market.
Bradford & Bingley has also produced a booklet, entitled "Helping you buy your first home", which offers first time buyers information on the range of specialist mortgages available and details of the key things to think about.
© DeHavilland Information Services plc