ACTIVITY in the housing market remained flat during May as the number of first-time buyers continued to fall, figures showed today.

The National Association of Estate Agents said just 14 per cent of all agreed sales involved people taking their first step on to the property ladder, compared with 18 per cent during April.

It said the figure was now the lowest since it first began collecting data on first-time buyers in 2001, and the proportion had been steadily falling since the beginning of the year when 21 per cent of sales were to people buying their first home.

In York, estate agents were reporting mixed results.

Peter Moody, of Hudson Moody Estate Agents, said its specialised first-time buyer office was by far its busiest.

"The office is very, very active," he said.

"It may be that we are disproportionate to other agents. We're seeing a lot of investment buyers dropping out of the market."

But Claude Elmer, of Acomb-based Claude Elmer Estate Agents, said first-time buyers were thin on the ground.

"I'm confident they will come back," he said.

"Normally we will start to see things pick up in August and September."

NAEA president Melfyn Williams said: "Clearly the present absence of first-time buyers suggests that many homes are unaffordable for most young prospective buyers.

"However, reports from our members suggest that the young are not staying at home with their parents, but are choosing to rent instead. The lettings side of many estate agency businesses has been booming this year."

The group said activity across the market had remained flat during May, with estate agents reporting an average of 12 new sales and nine exchanges of contracts during the month.

Updated: 10:34 Monday, June 16, 2003