But despite falling deposits, first-timers are taking out larger mortgages with the average mortgage climbing to 11.4% over 2013 to reach £122,040 in December as house prices continued to climb.

The figures show that the average purchase price paid by a first-time buyer reached £148,573, an 8.4% on December 2012 and a 1.7% rise on the previous month.

David Newnes, director of LSL Property Services, owners of estate agents Your Move and Reeds Rains, said: “First-time buyers are returning to the market in their droves as the property market emerges fully from the shadow of the financial crisis.

“There is a greater array of deals on offer to buyers with just a small deposit saved and schemes like Help to Buy are providing vital support to help new buyers access the very best rates.

“As with the entire market prices are quickly climbing upwards but lower rates mean that mortgage repayments are still affordable despite new buyers having to purchase property with a higher price tag.”

There were 29,100 first-time buyer transactions in December 2013 which represented a 30% increase on December 2012 this looks set to continue to grow as more renters intend to step onto the housing ladder in the next five years.

Of the registered tenants surveyed, 92% said they wanted to become a homeowner up from 89% in December 2012 with just over half of tenants are expecting to buy in the next five years but only 6% by the end of 2014.