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Single First Time Buyers Now Need £74,000 Deposit, Rightmove Says

Home> News

Updated 17:36 10 Jun 2022 GMT+1Published 17:34 10 Jun 2022 GMT+1

Single First Time Buyers Now Need £74,000 Deposit, Rightmove Says

Rightmove has said the deposit is more than 50 percent higher than ten years ago

Emily Brown

Emily Brown

Brits looking to get on the property ladder by themselves for the first time would now need a deposit of £74,000 to buy the typical first home.

The possibility of buying your own home and leaving rented or shared accommodation behind appears to be becoming less and less likely for millions of people in the UK as a result of increasing house prices.

It should go without saying at this point that avocado toast and an extra pint at the pub are nothing to do with being able to afford a home, because the deposit needed to get a suitable mortgage has increased dramatically over the last 10 years.

The price needed for a deposit has increased dramatically over the last 10 years.
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The deposit figure comes from Rightmove, which looked at the example of a single buyer on the median wage being able to borrow a maximum of 4.5 times their salary to buy the average first-time buyer home costing £223,117. Wage figures were from the Office for National Statistics, and amounted to £31,980 today compared to £23,764 ten years ago. 

With that in mind, Rightmove determined a typical first-time solo buyer would need to cough up a 34 percent deposit of £74,402 in order to get a mortgage with a typical lender and bridge the gap between the mortgage and the price of the typical first-time buyer home, which costs an average of £223,117.

To be clear, that's more than two years' wage even without taking tax into account.

Commenting on the findings, per the Mail Online, Tim Bannister of Rightmove said: "The next generation of first-time buyers currently need to raise a deposit that is more than 50 percent higher than ten years ago, while average salaries have only increased by 35 percent.

"That's before you factor in if you'll be able to get a mortgage, as right now if you're buying on your own you'd need a hefty deposit of more than 30 percent to be able to borrow enough to buy a typical first-time buyer home."

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First-time buyers need a deposit of more than £70,000 on average.
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The finding comes as Boris Johnson announced a review into the mortgage market which aims to increase access to 95 percent loans for properties.

Bannister said a review would be 'greatly welcomed' if it could help with the issue of needing such a big deposit, adding: "It's clear to see why there are many renters keen to get on the ladder, as they're forking out 40 percent more each month than ten years ago, while low interest rates means average mortgage payments have only increased by 11 percent over that same time.

"Although competition among buyers is now starting to ease, we're still in a market where demand is massively outstripping supply in many areas of the UK. This has already pushed prices to record highs so the challenge for first-time buyers of raising a deposit is not going to get easier."

In the short term, Bannister has suggested more people are likely to turn to cheaper areas on the market in a bid to get on the property ladder.

Featured Image Credit: Alamy

Topics: UK News, Money, Boris Johnson, Politics

Emily Brown
Emily Brown

Emily Brown is the Community Desk Lead at LADbible Group. Emily first began delivering news when she was just 11 years old - with a paper route. She went on to graduate with a BA Hons in English Language in the Media from Lancaster University before contributing to The Sunday Times Travel Magazine and Student Problems. She joined UNILAD in 2018 to cover breaking news, trending stories and longer form features, and now works as Community Desk Lead to commission and write human interest stories from across the globe.

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