A Wolverhampton housing boss says first-time buyers are returning to the market and average prices are being cut to herald their return. Persimmon says first-time visitor numbers are up 35 per cent.

This a result of the introduction of the Government’s FirstBuy scheme in July.

But the company added the pick-up in activity from first-time buyers meant it expected its average sales price to dip below the £169,000 of last year.

Steve Hird, managing director of the firm, said: “The average selling price is probably coming down because over the past two or three years it actually increased.

“There are fewer people moving for the second and third time and with that market being smaller, the average selling price is watered down by new first-time buyers.”