Average UK house deposit passes £36k

Average house deposits for first-time buyers across the UK now stand at a hefty £36,489, according to new research from national housebuilder, St. Modwen Homes.

Related topics:  Finance,  Property,  house prices,  Deposit
Property | Reporter
12th September 2023
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In the ever-changing housing market, these latest findings could come as disappointing news to many first-time buyers, especially with 37% already pessimistic about their chances of getting a foot on the property ladder.

However, deposit figures aren’t as far out of reach in some UK cities, and there are ways first-time buyers can put down a lower deposit, helping them get onto the property ladder.

This new data reveals which key cities across the UK have substantial average deposits, and which are more affordable. Unsurprisingly, London tops the list for the most expensive average deposit across all cities (£70,341).

On the other hand, first-time buyers may be shocked to learn that, on average, it’s actually cheaper to buy a home in the UK’s second biggest city, Birmingham (£27,437), in comparison to Cardiff (£29,353), Manchester (£29,953) and Bristol (£39,743).

London: £70,341

London, is a world-renowned metropolis renowned for its rich history, culture and diversity. The city offers a never-ending list of opportunities and experiences which make it an exciting place to call home. But, with the average house deposit being a staggering £70,341, it may seem unachievable for most first-time buyers to buy a property here.

Bristol: £39,743

Not only does Bristol offer historic charm, but it’s also a vibrant city with plenty to do – including a lively food and music scene, plenty of shopping spots and lots of fun attractions. With a more affordable property market compared to London, Bristol may be a good choice for first-time buyers to enter the housing market. However, the average deposit here is still higher than the overall national average.

Manchester: £29,953

Over the past few years, Manchester has gained popularity amongst young adults and become the hotspot for individuals seeking an exciting and affordable lifestyle. Manchester offers a diverse range of attractions, from its iconic music scene to its world-class museums and sporting events.

The lower average deposit combined with the amenities and job opportunities available makes it an ideal place for first-time buyers to call home.

Cardiff: £29,353

Cardiff, the beautiful capital of Wales, offers a blend of historical significance and modern amenities that make it an appealing place to both live and buy a first home. With various eateries, galleries and bars as well as its scenic coastline, there’s always something exciting to do.

With the average deposit here being over £5,000 less than the national average, Cardiff is a great option for first-time buyers.

Birmingham: £27,437

Despite being the second largest city in the UK, the average deposit needed to buy a home in Birmingham is a lot less than some other major UK cities.

Over the years, Birmingham has transformed into a thriving hub of culture, innovation and opportunity. The city’s diverse neighbourhoods offer a range of experiences, from the charm of the Jewellery Quarter to the modern architecture of Brindley Place. With its impressive variety of restaurants, shops and entertainment venues, this city caters to a variety of interests and lifestyles.

Sheffield: £24,398

Located in the stunning landscape of South Yorkshire, Sheffield offers a blend of natural beauty, cultural richness and affordability that makes it an appealing city to live in. The “Steel City” presents an attractive housing market with relatively low property prices compared to larger urban cities.

With the average deposit coming in a lot lower than other cities across the UK, Sheffield may be a good option for those looking to get on the property ladder with their first home.

Liverpool: £21,579

Finally, the lowest average deposit out of all the cities compared to this new data is Liverpool. This city captivates visitors and residents alike with its dynamic energy and iconic landmarks. Its affordable housing market also makes it a good option for first-time buyers looking to soak up its proud history and promising future.

These figures have been calculated based on a 10% deposit – the minimum amount most UK banks will accept from first-time buyers.

Jo Winston, Sales and Marketing Director at St. Modwen Homes, says: “We’ve heard from hundreds of people from across the nation who are desperate to buy their first home but feel trapped by the system.

“The cost of living crisis is squeezing people’s finances, meaning there’s less money than ever before left to go towards savings. On top of this, those who are able to put some money away each month are getting very little return on investment because of low savings rates. All of this combined means saving for a large deposit is extremely difficult for many prospective homeowners.

“Our 5% Deposit Contribution has been specifically designed to make buying a new house more affordable, easier and quicker for first-time buyers. By matching the buyer’s 5% deposit, the scheme will enable homeowners to put down a 10% deposit in total, giving them access to a larger pool of mortgage lenders and a wider choice of deals.”

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