The Financial times has reported a significant increase in the number of first time buyers looking for a mortgage during the last 3 months. Figures show that applications from first-time buyers accounted for more than 40 per cent of all borrowers. This compares to less than 10 per cent in October last year.

The fall in house prices has at last made it easier for first time buyers to afford their first property. There are now a number of mortgage loans available at 90% loan to value and a handful at 95%. These rates are of course expensive and the most competitive rates are available for those with a 25% deposit.

First time buyers are the life blood of the property market since when they stop buying the chain can not get started. So this is at last some good news on that front. Long may it continue.

Due to the recent falls in house prices, now can be a very good time to move up the property ladder.

The Financial Times has reported that according to Propertyfinder.com those looking to make the jump from a one-bedroom to a two-bedroom home now have to find an extra £31,000, while a year ago they would have needed £41,500. This is because the average price of a two-bedroom property has fallen 12 per cent in the past year to £160,600, while the value of a typical one-bedroom home has fallen 8 per cent to £129,874.

When prices are at their peak, all areas of the market tend to move up at the same pace. But in a falling market, certain areas, streets or buildings hold their own better than others.

The FT reports estate agents believe homeowners are increasingly willing to take a hit on the sale price of their own property as they are able to secure greater discounts further up the chain. Some people are even willing to sell their property for less than they bought it for two years ago, as the loss is irrelevant if the saving on their new purchase is bigger.

Homeowners considering a move up the ladder are advised to find the property they want to buy, and see what discount they can achieve, before putting their own house on the market