The number of first-time buyers fell 22% between January and August this year, compared to the corresponding period last year, according to the latest Halifax First-Time Buyer Review.

Based on transaction data from this year so far, the mortgage lender estimates that about 186,000 people will purchase their first home this year, down by almost a quarter year-on-year.

By comparison, at the peak of the pandemic property market boom in 2021, close to 270,000 first-time buyers got on the property ladder.

The greatest decline in demand from first-time buyers has been in the South East, where prices are highest. By contrast, in Scotland, the most affordable place in the UK for would-be homeowners, the fall in first-time buyer numbers has been less pronounced.

According to Halifax, the average price of a first home was now £288,030, down 2% year-on-year.

Kim Kinnaird, Halifax’s director of mortgages, said raising a deposit remained “a significant hurdle” for those trying to get on the property ladder.

Also reflecting on the data, Chris Druce, senior research analyst at Knight Frank, said: “With interest rates at a 15-year high, affordability is proving to be a significant drag on activity in the UK residential market. First time buyers (FTBs), who are typically unable to access the best mortgage rates when starting out, are particularly exposed to this.

“While we expect average prices to decline by 10% through this year and next as the market continues to cool after a pandemic inspired boom, the challenge of getting onto the property ladder will remain significant.

“With the political party conference season underway, fresh polices to support FTBs are needed.

“This is because existing measures – such as the doubling of the nil-rate stamp duty threshold for FTBs – are helpful but time-limited. A replacement for the expired Help to Buy scheme, which at its peak supported 50,000 new build sales annually in England, would prove popular, too.”