Full Breakdown
Regional Disparities in First-Time Homebuyer Deposits Across the UK
1/21/2026, 12:02:22 AM
Overview of Deposit Requirements
Research conducted by Nationwide Building Society highlights significant regional disparities in the deposits required for first-time homebuyers across the UK. In London, prospective homeowners face the highest barriers, needing to save approximately £44,800 for a typical 10 percent deposit. This amount is roughly three times larger than the deposits required in Scotland (£13,900) and the North East (£13,100), where first-time buyers encounter far less financial strain.
Timeframe for Saving Deposits
The analysis indicates that it could take a first-time buyer in London up to nine years to save for a 10 percent deposit, a stark contrast to the four years needed by buyers in some northern regions. Andrew Harvey, a senior economist at Nationwide, noted that even with a monthly saving of 10 percent of average net pay (around £320), it would still take nearly six years to accumulate the average deposit of £23,000 required for a typical UK first-time buyer property.
Regional Breakdown of Deposit Requirements
The following are the average deposit amounts required for first-time buyers across various UK regions:
- North East: £13,100
- Yorkshire and the Humber: £15,400
- Wales: £17,300
- North West: £17,400
- East Midlands: £19,400
- Northern Ireland: £19,400
- West Midlands: £20,400
- East Anglia: £21,200
- South West: £24,700
- Outer South East: £26,300
- Outer Metropolitan: £32,800
- London: £44,800
Financial Assistance for First-Time Buyers
Harvey emphasized that financial assistance from family members is often crucial for first-time buyers attempting to increase their deposit funds. In the 2024-2025 period, it is estimated that over a third of first-time buyers will receive support, either through gifts, loans from relatives or friends, or inheritances.
Challenges in Mortgage Affordability
Mortgage affordability remains a significant concern, particularly for individuals in certain employment sectors, such as sales, customer service, construction, and manufacturing. In these fields, typical mortgage payments can consume around 50 percent of average take-home pay, complicating the path to homeownership for many.
Future Outlook
Looking ahead, Harvey anticipates a gradual improvement in housing market activity, driven by income growth outpacing house price increases and a modest decline in interest rates. This may enhance affordability for prospective buyers, although the stark regional disparities in deposit requirements are likely to persist.
Verbatim Quotes
- “Andrew Harvey, Nationwide's senior economist, commented: "A 10pc deposit on a typical UK first-time buyer property is around £23,000.” — Andrew Harvey, Senior Economist, Nationwide Building Society
- “In these groups, typical mortgage payments would represent around 50 per cent of average take-home pay.” — Andrew Harvey, Senior Economist, Nationwide Building Society
This analysis underscores the challenges faced by first-time buyers, particularly in London, and highlights the ongoing need for financial support and policy considerations to address regional disparities in homeownership accessibility.
