Spicerhaart says that lower interest rates are actually doing little to address the first-time buyer crisis.

The latest Bank of England figures show increased competition in the mortgage market, with fixed rates now at their lowest level since 1995. Average interest rates charged on a two-year fixed-rate deal for a borrower with a 25% deposit dropped to 3.8% this month.

The Bank’s Monetary Policy Committee voted yesterday to keep the base rate at 0.5%.

Alison Beech, business relationship director at Spicerhaart, said: “May’s record-low fixed-rate mortgage deals are a positive thing for the housing industry as a whole