According to research from Mojo Mortgages, which was based on data from Mojo’s mortgage partners, the average first-time buyer deposit has risen to 22 per cent of the purchase price, up from 16 per cent last year.
There are significant regional differences however, with those in the south west seeing the sharpest increase. Would-be buyers in the region have seen the required deposits jump from £20,000 to £45,000, an increase of 125 per cent.
This is followed by those in the east of England, which has seen deposits grow 108 per cent from £24,000 to £50,000.
At the other end of the scale, buyers in Northern Ireland have only had to set aside an extra 25 per cent, with deposits increasing from £15,000 to £18,750.
Looking at the deposit in relation to the purchase price, the south west is again the toughest region for first-time buyers, who have to set aside an average of almost 25 per cent of the transaction cost. This is up from 16 per cent a year ago.
Once again the east of England takes second spot, where buyers also need to set aside almost 25 per cent of the purchase price.
In pure cash terms, buyers in London have to set aside the largest sum of cash, at an average of £61,000. This is an increase of almost 75 per cent on 2021.
Richard Hayes (pictured), founder and chief executive of Mojo Mortgages, said that the current high inflation environment was leading to greater concern among prospective first-time buyers over how they would be able to save a sufficient deposit.
He added: “While two people buying together may be able to more easily save the money required, someone looking to purchase on their own without external support might find it harder to get a deposit together.”
