UK first-time buyers maintained a strong presence in the homebuying market, despite deposits rising by more than £10,000 last year.

The number of first-time buyers as a proportion of all home mortgages remained stable last year at 50 per cent, compared to 51 per cent in 2019 and 50 per cent in 2018, according to data from Halifax.

The pandemic saw “sales activity largely grinding to a halt during spring” last year, says the study.

But a temporary stamp duty holiday, introduced in July, released pent demand, which saw “first-time buyer transactions bounce back strongly in the second half of the year”.

In London, the proportion of first-time buyers fell by the smallest percentage of any region, down by just six per cent year-on-year, despite deposits ballooning by 18 per cent £20,211, to an average total down payment of £130,357.

Across the UK, the average amount put down by a first-time buyer in 2020 lifted 23 per cent, or £10,829, to make up a deposit of £57,278.

Halifax managing director Russell Galley says: “Despite the obvious challenges presented by soaring house prices, not least the need to raise an even bigger deposit, first-time buyers still accounted for half of all home purchases, a reassuring statistic given their overall importance to the market.”

He adds: “However, with the economic impact of the pandemic likely to be felt most keenly by the young and those in lower-paid jobs, the need to prioritise improved housing availability and affordability for all those looking to make that first step onto the property ladder becomes ever greater.”

The average price paid by a first-time buyer in the UK last year lifted 10 per cent to £256,057, from 12 months ago.

London saw the biggest monetary increase in the average price paid by first-time buyers, with prices rising seven per cent to £489,098, compared to a year ago.

The greatest percentage growth came in the West Midlands, up 11 per cent to £205,246 year-on-year.

The North West’s Burnley remains the most affordable area to buy for first-time buyers – calculated by comparing average earnings to average house prices – with a ratio of 3.1.

The “vast majority” of the UK’s top 20 most affordable areas are in Scotland, according to the report, with East and North Ayrshire turning in 3.2 affordability ratios.

The list of the top 20 least affordable areas in the country continues to be dominated by London, with the borough of Islington posting a house price to earnings ratio of 11.9, followed by Brent, also 11.9, and Hackney at 11.8.