Estate agents are reporting high levels of interest from first-time buyers – but only from those who have healthy deposits ready to be laid down on a house.

There is optimism in the city's housing market for the first time in months, with agents across the city reporting a healthy number of sales and inquiries.

But at seven times the average wage of a worker in Bristol, and with lenders no longer offering 100 per cent mortgages, buying an average- priced home appears to be a far-off dream for most.

Having worked in the city for more than a decade, James Sheedy opened Matthews Estates on the Wells Road in February and has already sold 10 properties and let out three. His patch includes Knowle, Brislington and Bedminster.

The 30-year-old said: "The only first-time buyers I've come across have been funded by their parents.

"I sold a house on the Bath Road, Brislington, to man and his mum put up 50 per cent of the mortgage as an investment.

"I think the average house price is still out of reach for most first-time buyers.

"You are not going to get 110 per cent mortgages anymore. Personally, I think it would be great if the prices could come down a little bit more but I don't think they will, realistically.

"I'm going out and valuing people's properties in today's market – not the inflated market for 18 months to two years ago. I've come across quite a few people who bought houses a year ago and are now in negative equity."

Woods Estate agents have offices in Westbury-on-Trym, Portishead, Yate, Stoke Gifford and Bradley Stoke. Managing partner Doug Wood said there was "a lot of activity" with properties valued at about £100,000, from prospective buyers who have saved up 10 to 15 per cent deposits to take a chunk out of the potential mortgage.

In Brentry, Henbury and Southmead, such properties were often terraced, former council houses with three bedrooms, or terraced houses needing work done.

"Around that mark there is demand from first-time buyers," he said. "There is a property market now, I'm pleased to report, but I do not believe we're going to see any rise in prices. In my view, the market seems to have stabilised. The fear of unemployment and rising taxes will keep a lid on it for the remainder of the year."

James Goodchild, manager of Maggs & Allen's Henleaze branch, feels the average home is still out of reach from the average earner, but second or third-time buyers with healthy deposits can get back into the market.

"We're very busy at the moment," he said. "A lot of people who had got into rented property are looking to buy again. If you've got a good deposit to put down you can secure a mortgage that is not unrealistic."