The increase in first-time buyers is largely due to parents choosing to assist their children in buying their first home by helping them with a deposit, a property investment advisor has suggested.

Chief executive of Assetz Stuart Law stated that many parents do not feel they have a viable alternative place to put their money that will provide them with a decent, safe return.

"Parents are coming to the conclusion that they should perhaps be helping their children with this money, rather than seeing it languish in a bank account where there's no interest being paid," he explained.

Mr Law was explaining statistics from the National Association of Estate Agents, which showed the percentage of sales made to first-time buyers increased from 19 per cent in December last year to 23 per cent in January 2010.

The figures also showed that houses sold by the average estate agent increased month on month in January, despite some of the worst weather on record.