Rapidly rising house prices and a pick-up in investor activity are forcing first home buyers out of the market, with new lending to FHBs falling for the second month in a row.

According to the latest Australian Bureau of Statistics housing finance data, the number of new loans to first home buyers in April was down 1.9 per cent month-on-month, following a 3.1 per cent fall in March.

First home buyer participation in the residential property market picked up strongly in the middle of last year, as the prospect of an extended period of historically low rates encouraged first home buyers to gear up.

That trend appears to have peaked. Another factor contributing to the decline in first home buyer activity is the end of support programs such as Homebuilder.

The value of new mortgage lending to investors in April was up 2.1 per cent month-on-month, following an increase of 12.7 per cent in March.

New mortgage lending to owner occupiers was up 4.3 per cent month-on-month.

Overall, the value of new housing finance commitments rose 3.7 per cent in April, compared with the previous month, and was up 68.2 per cent over the 12 months to the end of April.