The asking price of an average home climbed £58 per day in February - an increase of 0.8% to £231,790. But owners of terraced homes are being squeezed out of the market as first-time buyers are unable to move because of high deposits demanded by lenders. The March Rightmove House Price Index shows that asking prices have risen by just 0.9% over the past 12 months.

Miles Shipside, a director at Rightmove reported: “The falling time on the market and stable spring stock levels would normally point to a healthy housing market. However, this year’s celebrations will be severely muted by the knots the market has found itself tied up in. The market is still restrained by low transaction volumes and restricted liquidity.”

However, in a positive sign, the average time a property is on the market reduced to 89 days, from 98, in the month to March. But the housing market is now being driven by the need for larger deposits, leading to greater liquidity for more expensive property types, which appeal to a wealthier demographic. Meanwhile, first-time buyers and sellers of terraced homes are struggling. The property website says the number of terraced properties coming on to the market is down by 31% since March 2007.

“Terraces’ target audience of would-be first-time buyers are stuck in rented accommodation, with 30&% of them in our recent survey expecting to stay there for three years or more”, Shipside added.