A new record has been set for the number of people being approved to take out a mortgage, with the rise driven by first-time buyers.

But large numbers of those approved to borrow are likely to be disappointed as the market is suffering from a chronic under-supply of new and second-hand homes to buy.

A total of 4,300 people were cleared to borrow in April, the highest value for this month since banks started collecting data on approvals in 2011.

This is almost double the number for the same month last year. The figures point to massive pent-up demand for housing.

There is a glut of potential home buyers, particularly first-time buyers, who have mortgage approval and are attempting to purchase a home.

But the number of properties available to buy on March 1 was just under 12,000 as the pandemic has delivered a massive shock to the supply of homes, a development that has deepened the housing crisis. This is down 40pc nationwide on last year.

Demand for property has been robust throughout the pandemic, and the number of first-time buyers looking to purchase their own property is at its highest figure in years.

There has been a reluctance by homeowners to sell in the middle of a pandemic, and the recently lifted restrictions on new building projects have cut supply.

The latest figures from the Banking and Payments Federation show that 4,362 mortgages valued at just over €1bn were approved in April.

First-time buyers were approved for 2,389 mortgages, which makes up 55pc of the total.

Mover purchasers accounted for 1,013 of the approvals, or around a quarter of the total.

In the 12 months to April, 46,131 mortgages were approved, with a combined value of €11.24bn.

Chief executive of the Banking and Payments Federation, Brian Hayes, said: “Compared with April last year, when the country was experiencing its first lockdown, there has been a doubling of activity across most mortgage categories during April 2021.”

He said the number of approvals equated to the highest value since the banking lobby group began to record mortgage approvals data in 2011, driven mainly by first-time buyer approvals.

Separate figures from the Central Bank show that the value of mortgages issued by banks fell by €166m in the month of April.

This indicates that large numbers of those approved for a mortgage are unable to get a property to buy and do not end up drawing down the mortgage.

In the year to the end of April, the net flows of lending for house purchase amounted to €408m, the lowest recorded since May 2018, the Central Bank said.

Last week, a survey found that many people who want to buy are pessimistic about their prospects of being able to purchase any time soon.

It found that half of 18- to 34-year-olds expect it to take between three and 10 years before they are able to buy a home.

The survey, undertaken for business group Ibec, also found there is strong support among the public for Government measures to improve the supply of affordable homes.

Many expect to have to put off their dream of owning their own home for years due to the housing crisis.