You are here: Home - Mortgages - First Time Buyer - News -

Average deposit put down by first-time buyers is £33k

0
Written by: Christina Hoghton
29/01/2018
Deposits have doubled in the last 10 years but the number of first-time buyers has also risen to its highest level.

The average first-time buyer deposit has almost doubled in the last decade from £17,740 to £33,339, according to research from Halifax.

The lender said that, despite this huge increase in the typical amount required upfront to buy your first property, numbers of first-time buyers are at their highest level in the last 10 years. They grew by 6% in the last year alone.

There were 359,000 first-time buyers in 2017, up for the sixth consecutive year. This is an increase of 87% compared to an all-time low of 192,3002 in 2008 and is now just 11% below the most recent peak of 402,800 in 2006. First-time buyers now account for half of all house purchases made with a mortgage, an increase from 36% a decade ago.

The average price of a first-time buyer property has also increased hugely in 10 years, from £174,703 to £212,079 in 2017.

Russell Galley, managing director of Halifax, said: “Low mortgage rates, high levels of employment and Government schemes such as Help to Buy4 have helped first-time buyers become a much greater segment of the market, and the recent abolition of Stamp Duty on purchases of up to £300,000 is likely to continue stimulating this growth by reducing the upfront costs associated with taking the first step on to the property ladder.”

Regional split

In the past decade, the number of first-time buyers in London has fallen by 26% from 57,900 in 2007 to an estimated 42,983 in 2017, marking the third consecutive annual decline. The North is the only other region aside from the capital to see a drop in numbers from 17,300 to 16,430 (5%) during the same period.

On the other hand, the number of people getting on the housing ladder in Northern Ireland has grown by 65% to 9,410. The second largest rise was in the South West (16%, from 25,400 to 29,399). The South East has the largest number of first-time buyers in the UK, totalling over 69,000 last year, edging up from 67,600 in 2007.

The average price of a typical first-time buyer home in the South East has increased by £78,855 (or 39%) since 2007 – from £199,894 to £278,749 in 2017. In London, the average price paid by a new entrant to the property market in the capital has grown by £134,902 to £422,580 – double the national average.

House price growth in northern areas has been considerably more modest. In the last 10 years, the average price of a typical first-time buyer home in the North has grown by £9,462 to £126,437, while in Northern Ireland it has fallen £59,240 (33%) to £120,648 – the lowest in the UK.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2303381-malware-virus-security-threat-scam
Investors lose £87k a day to stock price bet scams

The financial regulator has issued a warning for investors to be on guard against online investment fraud as £87,000 is...

Close