The latest Halifax House Price Index revealed that the average UK property price has reached £261,743, a new record high.
The index also showed that annual inflation of house prices is at its strongest level in nearly seven years.
Farooqui explains that this is great news for sellers, but not for many first-time buyers who remain priced out of the property market.
Farooqui said: “The stamp duty holiday has relieved some of the pressure for buyers but it has also led sellers to increase their asking prices, creating artificially high house prices.
“Homeownership is out of reach for many and raising a deposit or securing a mortgage just feels like a pipe-dream. This should not be the case.
“Renters are spending astronomical figures while they try and save up to buy their first home.”
Farooqui believes one option renters have to close the gap is to use open banking-based rent tracking to improve their credit history.
He added: “A strong credit score is a foundation for financial freedom and will help to obtain a mortgage; a first, critical step on the path towards homeownership.”
