Research by LSL Property Services showed first-time buyer numbers of 31,400 last month, the highest amount in six-and-a-half years and 60 per cent more than a year ago.

Although house prices have continued to rise, mortgage payments as a proportion of income have remained the same over the last 12 months because rates have continued to fall.

First-time buyers are now paying around £8,000 more on average for a house than a year ago whereas deposits fell by 10 per cent to £23,802 making the average loan-to-value 83.5 per cent last month.

Loan-to-values for first-time buyers, up 3 per cent on last year, are now at their highest level since October 2008.

Figures released by the Mortgage Advice Bureau yesterday revealed that the number of buyers searching for 90 per cent plus loan-to-value deals had increased by 8 per cent in a year. 

But the disparity between the deposit required to buy a home in London and the rest of the UK continues to exclude many from their dream of home ownership.

London first-time buyers laid down an average deposit of £68,000 which was more than double that required from their counterparts across the rest of the country.

A semi-detached property in Wrexham, North Wales typically sought after by first-time buyers, costs £90,000 whereas a three-bedroomed terraced property in London would set fledging buyers back £375,000.

House prices across the country, not specific to a type of buyer, rose 11 per cent annually, sales registered by estate agent firms Barnard Marcus, William H Brown and Fox & Sons revealed.

Their data showed the average London house price to be £460,00 while in the rest of the UK the average home costs £212,000.