Yep. It ain't good. The U.K. need 40% of the housing market to be First time buyers in order to be considered healthy. http://www.mortgagesolutions.co.uk/mortgage-solutions/news/2026321/-buyer-levels-drop-23
If it is less than 25% this could put a stall to all home movers and a slower recovery to the economy.
Remember when people buy a house they also buy all kinds of goods and services related to that purchase which in turn helps business across the board.