Average deposit rises above £50k

Average deposit rises above £50k

Average first-time buyers need to put down a deposit of more than £50,000 to secure a home, claims new research.

Figures from mortgage advisor L&C Mortgages show the average deposit is now £51,821, which could rise to £65,930 in five years and £81,468 in a decade.

London buyers are also expected to need to increase their deposit substantially to around £250,000 within the next ten years.

However, the study also revealed 25 per cent of first-time buyers have not yet saved anything towards a deposit and are not optimistic about stepping on the property ladder in the near future.

“With this research predicting that the size of deposits required could rise considerably across the country, first-time buyers could be forgiven for giving up hope on owning their first home,” said David Hollingworth from L&C.

He added it makes sense for buyers to save as big a deposit as possible because of the more favourable mortgage deals for those with a larger down payment – although Mr Hollingworth saving is “easier said than done in today’s current climate”.