First-time buyer deposits keep rising

First-time buyers (FTBs) face many obstacles to homeownership in the competitive post-pandemic market. Although an increased Stamp Duty nil-rate threshold will be useful, saving for a deposit is still challenging.

Hefty price tag

Indeed, the average deposit for an FTB has climbed by 41% (after adjusting for inflation) in the last decade1. That means that, to put down a 15% deposit on an average house, prospective buyers now need to find £41,765. After accounting for other expenses such as surveyors’ fees and the cost of moving, the initial price tag can quickly reach £50,000.

Regional differences

In the last decade, the East of England has been the region with the biggest growth in average deposits (51%), ahead of London (47%) and the East Midlands (47%).

The London Borough of Waltham Forest has experienced the biggest rise (79%) since 2012, with Barking and Dagenham close behind (77%). Outside London, Thanet has recorded the largest jump (73%).

Savings boost

Although the past decade’s low interest rates haven’t made the task of saving any easier, recent rises to Bank Rate could help savers accumulate a greater level of interest.

1Barrows and Forrester, 2022