First-time buyers are showing an increased interest in the housing market and are setting their sights higher, according to the latest statistics.

First-time buyers are showing an increased interest in the housing market and are setting their sights higher, according to the latest statistics.

The average value of dwellings looked at by those purchasing their first home rose by 8.59 per cent over the 12 months to £165,779.

For existing homeowners, the average value of properties searched for stands at £207,850 for the year, which is an increase of 1.25 per cent.

The news comes shortly after it was revealed that first-time buyers are returning to the market as they believe house prices will not decrease any further.

Meanwhile, 2005 saw little change in house prices throughout the UK, but mortgage levels still rose over the same period, according to the Moneyextra Monthly Mortgage Market Monitor.

This could spell good news for sellers in 2006, as the increased interest from UK buyers in the market could bring house price rises.