First-time buyers in London face a significant financial hurdle, needing a deposit nearly three times larger than those in Scotland or parts of northern England, according to new analysis from Nationwide Building Society.
Securing a 10 per cent cash deposit in the capital could take a prospective homeowner nine years, five years longer than for those in some northern English regions. In the North East, a typical 10 per cent deposit stands at approximately £13,100, while in Scotland it is around £13,900, and in Yorkshire and the Humber about £15,400.
In stark contrast, a first-time buyer in London would typically need to raise £44,800 for the same deposit, highlighting the regional disparity in property accessibility across the UK.
Andrew Harvey, Nationwide’s senior economist, said that a 10 per cent deposit on a typical UK first-time buyer property is around £23,000, and even saving 10 per cent of average net pay (about £320 per month) would take nearly six years to accumulate. He added that over a third of first-time buyers are estimated to have had some help with their deposit, often from family or friends.
Mortgage affordability is particularly challenging for those in sales, customer service, construction, and labouring roles, where typical mortgage payments could absorb around 50 per cent of take-home pay.
