It already takes an average of seven and a half years for first time buyers to save for a deposit – but a new analysis suggests it’s going to get much worse.
Average Property Price, Deposit Cost + Time to Save 10% Deposit (Against Annual Earnings) – Terraced Houses
| Year | Average Property Price | Average Deposit Cost | Average Annual Earnings | Number of Years Needed To Save for a 10% Deposit |
| 2015 | £142,553 | £14,255 | £24,960 | 5.7 |
| 2025 | £228,968 | £22,897 | £37,544 | 6.1 |
| 2035 | £367,769 | £36,777 | £56,473 | 6.5 |
| 2045 | £590,712 | £59,071 | £84,945 | 7.0 |
Average Property Price, Deposit Cost + Time to Save 10% Deposit (Against Annual Earnings) – Detached Houses
| Year | Average Property Price | Average Deposit Cost | Average Annual Earnings | Number of Years Needed To Save for a 10% Deposit |
| 2015 | £288,243 | £28,824 | £24,960 | 11.5 |
| 2025 | £437,325 | £43,733 | £37,544 | 11.6 |
| 2035 | £663,511 | £66,351 | £56,473 | 11.7 |
| 2045 | £1,006,682 | £100,668 | £84,945 | 11.9 |
The full research also shows the costs increase by every single year and for semi-detached flats and maisonettes.
The research claims thatthe average cost of a home saw a compound annual growth rate of nearly 4.26% between 2015 and 2025. This means the average home has increased in value by this rate each year. The average home could cost £670,000 in 20 years if current trends continue.
In 2025, the average 10% deposit in the UK will set buyers back £28,524. According to current trends, this could rise to £74,547 by 2045. Flats and Maisonettes are projected to require the lowest deposit, at £67,008, while detached houses will average £100,668.
As detached houses will be the most expensive property type in 2045, deposits will also be the highest, costing buyers £100,668 on average, more than double the current deposit (£43,733).
According to the forecast, in 20 years, the average deposit for a semi-detached house in the UK will total £71,442. This equates to over four-fifths (84%) of the projected annual wage in 2045, £84,945, slightly higher than 2025’s rate of nearly three-quarters (73%).
By 2045, it will take an average of nine years to save for a 10% house deposit, based on the average number of years needed to save for a deposit across the four property types we looked at. This is 18 months longer than in 2025.
A spokesperson for the firm commissioning the research – Sell House Fast – says: “As house prices continue to rise, our forecast suggests the average UK home could cost £670,000 by 2045. Detached houses are expected to reach the £1 million mark on average by this point.
“This long-term growth suggests sustained demand and regional disparities between the North and South, which will likely increase over time, except for Manchester. According to our predictions, Manchester will consistently rank in the top 10 areas with the longest times needed to save for a deposit.
“First-time buyers may face increasing difficulties in 20 years, with the average deposit rising to an estimated £67,000 and deposit saving time rising to nine years or more. As a result, younger generations will need to begin planning their financial future much earlier.”
You can see the full research here.
