First-time buyers now need to save an extra £15,000 to purchase their first home, according to new research by online mortgage broker Mojo Mortgages.
The average house buyer is saving a deposit of £33,000 to get onto the property ladder in the UK – up from £18,000 in January 2021.
In the research, Mojo Mortgages also analysed data from its mortgage partners to reveal that the average deposit size has grown from 16% of the purchase price to 22% as the housing market continues to become more competitive.
Those living in the South West of England have felt the impact of deposits rising the most, as the average down payment doubles from £20,000 to £45,000.
Residents in cities such as Bath, Bristol and Cheltenham are also forking out on deposits worth almost 25% of the purchase price – the highest in the UK.
Other findings from the research include:
- Londoners continue to have the highest average deposit at £61,000, up 74.3% from 2021.
- Wales has also seen deposit rates double from £14,947 to £30,000.
- The East of England has one of the highest deposit sizes proportionally, with residents contributing almost a quarter of the average property price, as deposit sizes rise from 16.6% to 24.49%.
The average deposit size in £ across the UK:
| UK region | Average deposit 2021 | Average deposit 2022 | Growth in deposit size YoY |
| South West of England | £20,000 | £45,000 | 125% |
| East of England | £24,000 | £50,000 | 108.3% |
| Wales | £14,947.50 | £30,000 | 100.7% |
| South East of England | £26,000 | £50,000 | 92.3% |
| West Midlands | £17,500 | £32.025 | 83% |
| North West | £15,000 | £27,000 | 80% |
| London | £35,000 | £61,000 | 74.3% |
| North East | £12,000 | £20,000 | 66.7% |
| East Midlands | £18,000 | £30,000 | 62.2% |
| Yorkshire and The Humber | £14,998.50 | £23,000 | 53.3% |
| Scotland | £14,000 | £20,000 | 42.9% |
| Northern Ireland | £15,000 | £18,750 | 25% |
While Yorkshire and The Humber had a lower growth in deposit sizes compared to the other 11 regions, residents are paying one of the highest proportions of deposit compared to other regions – at 22.35%.
Northern Ireland had the lowest growth in deposit size at just 1%, with the smallest deposit size too at 16.4% of the total value of the property.
How deposit sizes have changed in the last year:
| UK region | Average mortgage deposit size 2021 | Average mortgage deposit size 2022 | Growth in mortgage deposit size YoY |
| South West of England | 16.41% | 24.76% | 11.1% |
| East of England | 16.64% | 24.49% | 10.4% |
| Yorkshire and The Humber | 15% | 22.35% | 9.5% |
| South East of England | 17.06% | 24.06% | 9.2% |
| Wales | 14.34% | 21.11% | 8.6% |
| West Midlands | 15.7% | 22.29% | 8.5% |
| London | 17.37% | 23.09% | 7.4% |
| North West | 15.48% | 20.94% | 6.9% |
| Scotland | 14.16% | 19.67% | 6.9% |
| North East | 14.15% | 19.49% | 6.6% |
| East Midlands | 16.44% | 21.58% | 6.6% |
| Northern Ireland | 16.08% | 16.93% | 1% |
Richard Hayes, founder and CEO of Mojo Mortgages, said: “Inflation is affecting everyone as they have to contend with the cost of living squeeze.
“With the energy price cap rising and a high cost of food and petrol, it’s no surprise that many first-time buyers will also be concerned about rising house prices, and how they will be able to save enough money to purchase a home.
“While two people buying together may be able to more easily save the money required, someone looking to purchase on their own without external support might find it harder to get a deposit together.
“However, while this research highlights the increase in deposit sizes, it’s important for anyone considering getting onto the property ladder to speak to a mortgage broker, no matter what stage you are at.
“This will help you to get a much clearer understanding of your financial situation and what you can afford, which will help you get closer to purchasing your first home.”
