Lending to first-time buyers increased in all parts of the UK during the final quarter of 2013 as this group continues to drive the market’s recovery.

London led the way, as 13,400 loans were advanced in the three-month period and this represented a 33 per cent year-on-year increase, according to figures from the Council of Mortgage Lenders (CML).

People looking to take their first steps onto the property ladder in the capital are typically borrowing £198,900 and spending an average of 20.6 per cent of their monthly income on mortgage payments.

“First-time buyers have continued the strong upward trend in lending we have seen throughout 2013 and, despite much debate in political spheres about their affordability plight in the capital, an increasing number are realising their aspirations to become homeowners,” said Bob Pannell, CML chief economist.

All parts of the country have been buoyed by first-time buyer activity, with significant rises also recorded in Northern Ireland (29 per cent), Wales (28 per cent) and Scotland (26 per cent).

This group of homebuyers has been boosted by the greater affordability of high LTV mortgages, meaning they do not need to save up as big a deposit.

Measures such as the government’s Help to Buy have underpinned this growth, as it has left lenders more inclined to give loans to candidates they would have previously viewed as risky or not suitable.

Iain Malloch, chair of CML Scotland, sees reasons for optimism north of the border too, as greater mortgage availability and the economic recovery are leading an upturn in activity in Scotland.

“First-time buyers have been a crucial driver throughout 2013, and the CML anticipates this growth in the market will continue into 2014,” he added.

The property market has already had a positive start to the year, as the CML revealed earlier this month that gross mortgage lending increased by 33 per cent year-on-year in January 2014.