Jeremy Duncombe, director of Legal & General Mortgage Club, said it was evident from various house price indices and trade body figures that demand was still outstripping supply across the UK.
Mr Duncombe said: “This is pushing many prospective buyers out of the market. In order to subvert this trend we need to build at least 250,000 more homes a year and bring supply in line with demand.”
Mark Harris, chief executive of London-based SPF Private Clients, said the availability of good mortgage products was helping first-time buyers. He said: “The number of first-time buyers continues to grow, as they take advantage of the plethora of high loan-to-value deals available.
“Falls in product pricing means that first-time buyers are not overstretching themselves as they are paying a record low proportion of their monthly household income to service their mortgages.”