If you’re looking to get on the property ladder, it pays to be choosy about the location.
We don’t mean finding the ‘worst house on the best street’ or looking for up-and-coming areas either – the UK region you go for can also make a world of difference.
New data from OnTheMarket shows the average deposit for first-time buyers around the country now sits at £53,414; still no small sum, but down on the 2022 amount of £62,471.
Two areas require a bigger outlay, with London – unsurprisingly – leading the ranking at an average £108,848. The South East isalso above the median, requiring a deposit of £59,075.
On the opposite end of the scale, it’s easiest to save up in the North East, the only region where the figure is below £30,000 (albeit only just: £29,740). Here, you can choose from the likes of Newcastle, Middlesbrough, Sunderland, Gateshead, Darlington, Hartlepool and Durham, forking out less than a third to get your keys compared to the capital.
Northern Ireland came second-cheapest at £31,948, while in Yorkshire and the Humber, deposits for newbie homebuyers sit at £33,208.
Figures on the rest of the list are largely around the £35,000 to £40,000 mark, before jumping up sharply as soon as you hit the English North-South dividing line.
Although some areas are more affordable than others, the situation is still pretty bleak.
To put the numbers in perspective, the median wage for a full-time employee in the UK is £34,963, dropping to £29,120 for those aged 20 to 29. So is it any wonder it now takes six years longer for younger generations to buy their first home?
For many, moving somewhere cheaper is also just not an option, whether that’s due to family ties or a lack of work opportunities in certain areas.
And while London’s average wage is higher (£43,628), the high deposits expected eclipse any extra additional income. If you’re in a low-paid role – and especially if you’re paying sky-high rents while trying to save – homeownership is still a largely unrealistic prospect.
That doesn’t mean you should give up entirely though.
The Mortgage Guarantee Scheme makes it possible to get a mortgage with a 5% deposit (rather than the usual 10%) from participating lenders. The scheme only runs until June 30, 2025, but it’s worth a look to see if you’re eligible.
Additionally, there are a few ways to boost your savings pot and hopefully reach your total a little faster.
Mortgage expert Claire Flynn from Confused.com recommends starting off by tracking your outgoings, then looking back after a month or two to see where you can reduce your spending – including cancelling those unused subscriptions and standing orders.
Claire previously told Metro.co.uk: ‘Rethink your living situation if you are able to. Could you move in with a family member to pay less? Could you downsize or rent in a cheaper area?
‘Plus, if you don’t have a Lifetime ISA yet, consider setting one up to get a 25% tax-free bonus on savings; just make sure you read the terms and conditions beforehand.’
The key, she says, is ‘manageable savings targets’ for each month which will all add up and help get you your first home.
Do you have a story to share?
Get in touch by emailing MetroLifestyleTeam@Metro.co.uk.
The Key Newsletter
Get all the need-to-know property news, features and advice from Metro every week.
Sign up here...
Privacy Policy
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
