Analysis of mortgage applications submitted through L&C between January and August 2026 found that the average first-time buyer deposit stood at £69,523 against an average purchase price of £305,000.
This means first-time buyers typically contributed 20.7% of a property’s value as a deposit.
However, L&C noted that this proportion has fallen from more than 24% in 2023 as lenders have expanded options for borrowers with smaller deposits.
The data also showed that the average age of a first-time buyer has risen to 33.
L&C said the figures underline the scale of the deposit hurdle facing prospective homeowners, with saving for a deposit continuing to be one of the biggest barriers to entering the housing market.
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Lengthy deposit-saving journey
According to the broker’s calculations, it would take around 16-and-a-half years to build a typical first-time buyer deposit by saving £250 per month and earning 4% interest.
The findings reflected wider affordability pressures, with Skipton Building Society research showing that 73% of renters felt locked out of the property ladder and 45% said high rental costs made it harder to save for a deposit.
David Hollingworth, associate director at L&C Mortgages, said: “For many aspiring homeowners, the deposit can feel like an impossible target.
“Saving almost £70,000 for a first purchase means many rely on help from friends and family or will spend years building a deposit before even thinking about applying for a mortgage.”
He added that advisers have an important role in helping borrowers understand the products aimed at easing access to homeownership.
“Getting mortgage-ready is important and the market is shifting all the time. Advice will help buyers understand their affordability, repayments and mortgage options,” Hollingworth said.
