New figures show
L&C Mortgages reveals that the average first-time buyer deposit could be set to rise by nearly 60 per cent over the next 10 years. The current average deposit for first-time buyers sits at a huge ยฃ51,821, and could go up to as much as ยฃ65,930 by 2022. By 2027, first-time buyers may need to put down 28 per cent of a propertyโs value, which could amount to a deposit of ยฃ81,468, up by ยฃ29,647 from the current average deposit put down.ย
Looking at different cities across the UK, deposits are set to rise nationwide with the required amount going up by 75 per cent in the next 10 years in London, 62 per cent in Brighton and Hove and 59 per cent in Bristol. By 2027 the average deposit for a first-time buyer in London could go up to ยฃ244,842 โ up ยฃ104,855 from the current ยฃ139,987 it is today. Even in Belfast, the city with the lowest percentage increase over the next ten years, deposits could rise by 41 per cent by 2027, jumping up from the ยฃ29,682 needed today to ยฃ41,755 in a decadeโs time.ย
UK cities | Deposit needed today | Deposit needed 2022 | Deposit needed 2027 | Total % increase by 2027 |
London | ยฃ139,987 | ยฃ188,966 | ยฃ244,842 | 75% |
Brighton and Hove | ยฃ77,407 | ยฃ100,032 | ยฃ125,280 | 62% |
Bristol | ยฃ58,035 | ยฃ74,192 | ยฃ92,062 | 59% |
Norwich | ยฃ40,890 | ยฃ51,626 | ยฃ63,364 | 55% |
Edinburgh | ยฃ37,661 | ยฃ47,467 | ยฃ58,204 | 55% |
Southampton | ยฃ45,262 | ยฃ56,775 | ยฃ69,349 | 53% |
Cardiff | ยฃ34,400 | ยฃ42,593 | ยฃ51,485 | 50% |
Leeds | ยฃ29,589 | ยฃ36,633 | ยฃ44,252 | 50% |
Manchester | ยฃ28,672 | ยฃ35,513 | ยฃ42,912 | 50% |
Birmingham | ยฃ30,602 | ยฃ37,792 | ยฃ45,564 | 49% |
Plymouth | ยฃ36,384 | ยฃ44,762 | ยฃ53,806 | 48% |
Sheffield | ยฃ26,193 | ยฃ32,263 | ยฃ38,797 | 48% |
Glasgow | ยฃ21,876 | ยฃ26,904 | ยฃ32,291 | 48% |
Nottingham | ยฃ25,132 | ยฃ30,693 | ยฃ36,650 | 46% |
Newcastle upon Tyne | ยฃ26,037 | ยฃ31,826 | ยฃ38,046 | 46% |
Liverpool | ยฃ21,292 | ยฃ25,852 | ยฃ30,716 | 44% |
Belfast | ยฃ29,682 | ยฃ35,528 | ยฃ41,755 | 41% |
Source:ย L&C Mortgages Research (compiled by Opinium)
David Hollingworth from L&C said:ย โWith 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. There is some stark variation between cities but the fact that London deposits could be almost hitting a quarter of a million pounds by 2027 is alarming. It makes sense for first-time buyers to try and raise as big a deposit as possible but that is very much easier said than done in todayโs current climate. Although there are mortgage deals available to as much as 95 per cent of the property price, rates on these types of deals will be higher than for those who have saved a larger deposit. Given the level of commitment that first-time buyers are having to make itโs of little surprise that they are often electing to fix their mortgage rate, so they know where they stand with their mortgage payments.โ
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