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Latest figures published by the CML revealed the average deposit put down on a property in July was 15 per cent, up from 13 per cent in June.

While remortgaging rose and lending for house purchase held steady in July, the number of first-time buyers entering the market fell by 5 per cent, compared with June, as a result of tightening criteria.

The number of loans to first-time buyers declined to 17,300 in July, down 48 per cent from July 2007.

First-time buyers typically borrowed 3.24 times their income, down from 3.33 in June and the lowest income multiple since July 2006, according to the CML.

Michael Coogan, director general of the CML, said: “The stamp duty and shared equity measures announced by the government last week will be helpful to those first-time buyers looking to enter now, but many may be waiting for house prices to stabilise.”

Michael Brill, director of Essex-based IFA Baronworth Investment Services, said despite the temporary suspension of stamp duty for homes worth less than £175,000 more still needed to be done by the government to stimulate the housing market.