First-time buyer numbers have soared to their highest levels in six years, a report shows.

There were 120,000 in the first six months of this year, a 20 per cent increase year-on-year, the Halifax has found.

Improvements to the housing market have made it easier for buyers in their 20s and 30s to get on the property ladder.

Mortgage rates have been slashed to some of their lowest levels, driven by the government’s Funding for Lending scheme, giving lenders access to cheap finance to help borrowers.

Halifax said that the average house price paid by a first-time buyer was 4.26 times their annual earnings, well above an average of 3.23 over the last 30 years. Buyers in this sector are 30 years old on average, up from 29 in 2011.

Once first-time buyers have managed to make the jump on to the property ladder, mortgage repayments have become more affordable as a proportion of income.

Halifax said that the proportion of disposable earnings they typically need to put towards mortgage payments has dropped to 27 per cent, which is way below a peak of 50 per cent in autumn 2007 and sits comfortably under the long-term average of 36 per cent.

‘We’re determined that anyone who works hard and wants to get on the property ladder should have the chance to do so,’ said housing minister Mark Prisk.

‘Today’s figures show how government action is helping more first-time buyers take that step into home ownership.’

A new scheme called Help to Buy will be fully operational next year.

The government will underwrite £130billion of low-deposit mortgage lending with state guarantees.

Some analysts and even Business Secretary Vince Cable warn it could create a ‘property bubble’ with people overstretching themselves.