Homeowners on the bottom rung of the property ladder are finding it easier to trade up as house prices continue to fall.

According to new figures issued by propertyfinder.com, 12 months ago the average difference between a one-bedroom and a two-bedroom house was £41,500, it is now at a five-year low at £31,000.

Two-bedroom homes had fallen quicker than any other type of property and last year lost 11.92% of their value, in comparison one-bedroom homes which fell 8%.

The step up from a two-bedroom to a three-bedroom has also become easier due to a 11.89% reduction in the value of three-bedroom homes, with the cost dropping from £58,436 to £66,264.

However, the move from a three-bedroom to a four-bedroom has increased as larger properties continue to hold their value.

During the past year average cost of a four-bedroom home has dropped from £390,343 to £370,276, but because the price of three-bedroom homes has fallen faster, it means the cost of trading up has risen from £141,733 in 2007 to £151,235 last year.

Nicholas Leeming, director of propertyfinder.com, said: "The real catalyst for house price falls has been a lack of mortgage availability, particularly for less credit-worthy borrowers.

"This means the bottom end of the market has been more impacted by the slow down and prices there have fallen more rapidly.

"People higher up the ladder will naturally find it easier to gain access to finance in order to move, but because of this the price of four bed properties has only fallen 5%, compared to around 12% for two and three beds, so the financial gap has actually widened."

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