Affordability for first-time buyers has reached a four year high with borrowers needing £2,371 less to buy in October than they needed the month before.
Research by FindaProperty.com said an improvement in the average income multiple offered by mortgage lenders coupled with a slight drop in asking prices has improved home affordability compared to average incomes.
But it added those looking to take their first step onto the property ladder still have to find an average £48,782 deposit.
This is only the third time in almost four years that the required deposit has dipped below £50,000.
Average asking prices for first-time buyer properties (one and two bedroom flats and houses) are now £153,537, down 0.3% or £430 since September.
Prices in this segment of the market have fallen consecutively for the past five months and are now at their lowest point in 2011.
Prices are also 0.4% or £659 lower than they were a year ago when the average asking price was £154,232
Across the UK, home asking prices decreased 0.1% (£317) between September and October taking the average home asking price to £219,535 while prices are 0.7% (£1,473) higher than a year ago.
Samantha Baden, property analyst at FindaProperty.com, said: “First-time buyers will be encouraged to see that mortgage lenders are willing to offer larger loans and the gap between average earnings and the cost of a first-time buyer property has narrowed.
“This is good news for those looking to get onto the property ladder but it’s also great news for the housing market as a whole as first-time buyers are a vital foundation for the entire property chain.
“While the deposit that first-time buyers have to raise will be challenging for many, the reality is that house prices are proving resilient so for those fortunate enough to raise the necessary money it’s a great time to take that first step onto the property ladder.”
Ryan Donegan, Mortgage Adviser at TMIB said: “Whilst the market is undoubtedly challenging for first time buyers, this news shows that the position is easing slightly and should give encouragement to those looking to buy in the near future.”
