Abbey Mortgages is advising potential first-time buyers who are currently renting, to take their first step onto the property ladder.

The bank’s research shows that first-time buyers could collectively save up to a massive £1 billion if they acted now and bought their own home.

According to Abbey, 1.61 million Brits said they were looking to buy in areas of the country (other than London) and based on current prices, these people would save £624 each over the next year.

Commenting on the figures, Nici Audhlam-Gardiner, director of Abbey Mortgages, said: "Our latest research shows there is hope for first-time buyers trying to buy their first home. It’s now cheaper in all bar one of the regions (London) to buy rather than rent and shows that saving for that all important deposit is so worthwhile too."

However, the latest figures from the Council of Mortgage Lenders show that first-time buyers still require a hefty deposit of at least 25% in order to secure a mortgage.

But Ms Audhlam-Gardiner said, Abbey is committed to helping this group of people with its new Homebuyer Plus range of mortgages, which include special benefits for potential homebuyers such as helping with legal and valuation fees.

The range includes a 3.29% two year tracker at 75% LTV, a 3.99% two year fixed-rate at 70% LTV, a 5.79% two year fixed-rate at 80% LTV and a 5.99% three year fixed-rate at 85% LTV.