The research shows that the percentage of first-time buyers active in the market rose 3% in August to 40% of buyers – the highest level seen this year.

Steve Cox, operations director of Spicerhaart Financial Services, said: “First-time buyers are a vital driving force in the housing market.

“With property price growth finally cooling and stabilising in some areas, first-time buyers appear to be confident in their financial security. They are looking to buy before prices start to go up again.”

The survey also found that the percentage of borrowers opting for variable rate mortgages increased for the second consecutive month in August, rising 5% to 19% of all mortgage deals in July.

Trackers, which follow the Base Rate decided by the Bank of England at a set distance, were chosen by 16% of borrowers, the highest percentage since this time last year.

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However, fixed rates remain the most popular type of mortgage for borrowers, with 81% of Spicerhaart customers opting for these deals in August.

Cox said: “This further increase of variable mortgages confirms that a growing proportion of borrowers are stating to believe that interest rates have peaked, or will do so shortly.”