The number of first-time buyers leapt 22% in 2013, the largest annual increase since 2001.
There were an estimated 265,000 first-time buyers in 2013, up from 218,000 in 2012. This is the highest annual total since 2007.
Yet the figure is still nearly 30% lower than the annual average 370,800 in the five years to 2007, according to the annual Halifax First Time Buyer Review.
First-time buyers accounted for 45% of all house purchases made with a mortgage, up from 40% in 2012.
But the figures suggest new buyers aren't overstretching themselves. Thanks to all-time low mortgage rates, the average first-time buyer devotes 30% of their disposable earnings to mortgage payments, compared to a peak of 50% in summer 2007.
There has also been an increase in the proportion of areas that are affordable for first-time buyers since 2007.
The typical first-time buyer property in November 2013 was affordable for someone on average earnings in 31% of local authorities, compared to just 5% in 2007.
The average price paid by first-time buyers in 2013 was 10% lower than in 2007.
Martin Ellis, housing economist at Halifax, said: “The number of first-time buyers is estimated to have grown by a fifth in 2013, the largest annual increase in more than a decade.
"Low interest rates, improvements in consumer confidence and government schemes, such as Help to Buy, all appear to have contributed to the rise in the number of first time buyers.
"However, many potential first-time buyers continue to find raising the necessary deposit a problem. The Help to Buy mortgage guarantee scheme should enable more buyers to get on to the property ladder with smaller deposits.
"Continuing pressure on household finances during the next 12 months will no doubt remain a constraint."
The average first-time buyer deposit in 2013 was £30,943, up 11% on £28,001 in 2012, and 77% higher than the average of £17,499 in 2007.
First-time buyers in Greater London put down the largest average deposit at £56,183, with the smallest average in the North East at £15,862.
The average first-time buyer is 30 years old, up from 29 in 2011.
Jeremy Duncombe, director at Legal & General Mortgage Club, said the rise in the number of first-time buyers was a positive sign for the housing market. "It is also encouraging to see affordability improve in some parts of the country.
"However, it remains a mixed picture with areas in London and the South East seeing prices increase much faster than in other areas.
“While initiatives such as Help to Buy are helping those with a small deposit, there also needs to be a focus on ensuring there is a good supply of housing across the country and flexible mortgage products to enable more first-time buyers to buy a home.”
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