Home prices for first-time buyers are continuing to rise because of high demand from buy-to-let investors for properties typically acquired by those purchasing their first home, says Rightmove.

New data supplied from the property portal reveals that the average asking price for residential properties currently coming on to the market has increased by 5.6 per cent over the past year to a new high of £296,549, but sellers of typical first-time-buyer homes are now asking 9.6 per cent more than this time last year.

The average asking price of houses and flats with up to two bedrooms has increased by over £8,000 to £184,676, Rightmove said, making it harder for first-time buyers to save up enough money for a deposit.

The report states that home prices are being driven higher by growing demand from buyers, particularly buy-to-let investors, and that a lack of properties coming onto the market was creating greater competition for purchasers, particularly first-time buyers.

Rightmove added that the volume of first-time homes coming up for sale had dropped by 8 per cent on October 2014.

The buy-to-let market has gone from strength to strength in recent years, reflecting the fact that a growing number of people are turning to property as a means of supplementing their income in light of dismal savings returns from banks and building societies.

With housing in short supply and both rents and prices rising, more people are now acquiring properties across the many parts of the UK, supported by record-low mortgage rates, as buy-to-let consolidates itself as the investment of choice.

“Both investor landlords and first-time buyers looking to buy smaller homes are finding them in short supply,” said Miles Shipside (left), Director of Rightmove. “As they’re typically owned by potential first-time sellers, the price gap and costs of moving to the second step on the housing ladder deter them from coming to market. Competition is most fierce in this sector, with first-time buyers and buy-to-let investors going head-to-head for the same properties.”

Additional data from the Office for National Statistics (ONS) released last week also revealed that property prices for first-time buyers are increasing – up by an average of 3.8 per cent per cent over the year to August to a record high of £215,000.