The number of first home buyers entering the Australian property market is not as low as we've been led to believe, the Australian Bureau of Statistics has found.

An ABS investigation into the accuracy of estimates of loans to first home buyers found that banks are under-reporting loans to first home buyers because some lenders were not including people who did not receive first home owner grants.

The number of loans to first-home buyers that are being reported are about 80 per cent of the total number of loans to first-home buyers, the ABS estimates.

Their most recent data said 6061 homes were bought in November by first-home buyers, but that figure has been revised upwards to 7627 homes, or 14.6 per cent.

"The ABS has published first home buyer loan figures since the early 1990's," said Jacky Hodges from the ABS, "and initially we thought the fall off in first home buyer loans over the last two years was due to reduced affordability arising from changes in grants, rising house prices, increased investment housing loan activity and general economic conditions.

However, subsequent analysis and follow-up with lenders has confirmed that the drop was partly due to under-reporting by some lenders," said Hodges.

The total value of home lending is separately reported and is not affected.

The ABS is working with the Australian Prudential Regulation Authority - which collects the first home buyer loan data for the ABS - to ensure all loans to first home buyers are recorded in the future, regardless of whether they receive a first home owner grant or not.

In the meantime, the ABS will adjust first home buyer data for this under-reporting using estimates based on data provided by lenders that reported correctly.

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