The average deposit for first time buys being put down in London has increased by more than £19,000 since March 2020 to March 2021, according to new research.
Halifax building society found that, in the 12 months from March 2020 to March 2021, the average deposit put down by first-time buyers in the capital was calculated at £111,321, but in the 12 months to March 2021 it was put at £132,685.
The average London house price in the 12 months to March was £462,617, with the average deposit as a percentage of the total house price being 24%.
Requirements to put down a bigger deposit as a percentage as well as house price increases mean that first-time buyers have needed to put up more cash.
Across the UK
First-time buyers in other areas of Britain need to find more than £12,000 for a deposit than they would have done a year ago, said Halifax.
The average deposit that a first-time buyer needs to put down has risen in every region in the UK over the past year and now averages nearly £59,000, the new data showed.
The average first-time deposit is now £58,986 or around 23% of the property purchase price, Halifax found, marking an £11,677 increase compared with a deposit of £47,309 or 20% on average of the house purchase price a year ago.
Most low-deposit mortgages disappeared from the market last year amid concerns about the impact of the coronavirus pandemic on the wider economy.
Lenders will be taking part in a new 5% deposit mortgage guarantee scheme this spring, which will boost the availability of ultra-low-deposit deals.
However, those would-be buyers will still need to make sure they meet each lenders’ criteria to qualify, which can be difficult for some as the pandemic takes its toll on the jobs market.
“As we are all aware, the lockdown restrictions have made it much more difficult for those buying and selling homes, but the stamp duty holiday has helped increase record levels of mortgage application approvals as those held back by lockdown rush to make savings,”
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