The problem of raising a large deposit could be overcome by a gift or loan of only a few thousand pounds, according to a new analysis.

Andrew Hagger, at financial website Moneynet.co.uk, says that if parents can offer their adult children a loan or gift of £3,700 they will have a better chance of getting on the property ladder now than in mid-2007.

He explained that an 11.5 per cent overall decline in house prices means first-time buyers face an easier challenge than three years ago and could save nearly £5,000 on mortgage repayments in their first three years compared with buyers in 2007.

Because prices are significantly lower than in mid-2007, mortgage repayments for buyers would be £137 per month lower than in mid-2007.

Mr Hagger's calculations assume buyers get a maximum 90 per cent loan-to-value mortgage from Nationwide BS and that the average price of a first-time buyers' home dipped from £130,000 in 2007 to £115,000 today.

In mid-2007, first timers needed a £6,500 deposit (5 per cent) plus £1,300 in stamp duty for a £130,000 home. Today they need £11,500 (10 per cent) to buy a £115,000 home, but nothing for stamp duty.

Mr Hagger said: "Lower repayments mean the 2010 buyer would recoup the extra £3,700 upfront deposit costs in just 27 months."