The property market tends to face a slump in the first quarter – and this year was no exception – but year-on-year lending has increased.

Paul Smee, CML director-general, said: “The usual seasonal dip in lending has affected London, mirroring the rest of the UK, but lending year-on-year shows a strong upward trend. First-time buyers continue to be a key driver as an increasing number realise their aspiration of owning a home.”

The typical first time buyer in London borrowed 3.83 times their gross income in the first quarter of this year, higher than the national average of 3.42, with a typical loan size of £200,000.

The nationwide average loan size in the same period was £118,750.

First-time buyers in London spent 20.7% of their gross income on capital and interest payments related to their loans.

Andy Knee, chief executive of LMS, said: “First time buyer loans in London saw a significant year-on-year growth of nearly a third despite rising house prices as buyers remain keener than ever to take a step onto the property ladder.

“Clearly this demonstrates that while London remains a separate entity from the rest of the UK, high prices and large loans are not deterring those who want their own bricks and mortar.”

Overall Greater London lending for home-owner house purchases was down 13% during the first three months of 2014 compared to the fourth quarter of 2013. But it was up 22% compared to the first quarter of last year. The total value of new loans to homeowners was £5.6bn, up 37% compared to the year before.