First-time buyer’s ability to buy has improved since this time last year, but a new measure of affordability has shown they are being held back from the property ladder by the rising cost of living.

The Ability to Buy Index, released by the RBS Group this morning, provides a more realistic look at property affordability than traditional ‘house price to earning’ ratios, as it also tracks the size of our essential living costs, tax and national insurance. With all this taken into account, the index shows a 1% improvement for first time buyers trying to get on the property ladder compared to 2010. But, even with inflation beginning to fall, the end of the stamp duty holiday has lead RBS to warn that first-time buyers’ in the most stretched parts of the UK will be hit particularly hard.

Nationally, despite the improvement, it’s still taking first-time buyers a staggering 35 months to save up for their 10% mortgage deposit for a property that will cost almost five times (4.85) their yearly salary. According to the index, the repayments alone will eat up almost half (49%) of their income after food, heating, council tax and other essential bills.

Regionally, the ability to buy has seen the greatest improvement in Northern Ireland with a rise of 13% – its deteriorated most in the East of England – where it’s 8.6% worse in 2011.