Deposits for property purchases typically cost 10-15% of the value of the home and saving for one can be particularly challenging, especially for a first-time buyer.

Barrows and Forrester claim that in the last decade the average cost of a mortgage deposit has risen by 41%. This is the equivalent of a £10,000 price increase.

The current cost of a deposit for a first-time buyer was calculated as 15% of the current first-time buyer’s house price. Making comparisons with this figure and comparing it to the sum in 2012, enabled the estate and lettings agent to calculate these results. 

According to the research, in 2012 the average first-time buyer required a 15% mortgage deposit of £21,236, or £24,660 when adjusting for inflation. First-time buyers in the current market require a £34,787 deposit. 

Deposit increases on a regional scale

The region with the largest increase in first-time buyer deposit costs is the East of England. These are now 51% more than a decade ago. 

In second place with a 47% increase in London. In, the cost of the average first-time buyer mortgage deposit has climbed by 79% since 2012 in Waltham Forest. In Barking and Dagenham it’s up 77%, while Thanet has seen the largest jump outside of London at 73%. 

In contrast, Scotland only three areas to have seen the cost of a mortgage deposit on a first home decline in the last 10 years. 

Aberdeen deposit prices dropped by 25%, Aberdeenshire (-3%) and Inverclyde (-2%) have all seen a decline.

Managing director of Barrows and Forrester, James Forrester, commented: “The outlook is currently a very bleak one for those yet to secure that first foot on the property ladder. House prices have soared over the last 10 years, let alone during the pandemic, and so the initial financial hurdle of a mortgage deposit is far, far higher than it was in 2012.”

“At the same time, earnings have failed to keep pace, with a sustained period of record low-interest rates also making the task of saving a deposit extremely difficult.”

“While our savings may now accumulate a greater level of interest with the base rate increasing, the downside is the cost of securing and repaying a mortgage is also starting to climb considerably.”

“So even those that are able to make it to that first rung of the ladder will now find their household income stretched even further due to higher mortgage rates.”