The large deposits and lack of mortgages are slowing down most first time buyers.

Research has suggested that it is currently cheaper to buy a home in 80 per cent of areas - mainly due to the low interest rates.

But with interest rates expected to rise towards the end of the year the current situation may not last for long.

And if interest rates were to rise by 1 per cent, tenants would be better off renting in 78 per cent of areas.