First-time buyers are putting down deposits of almost £70,000 on average to get onto the property ladder, highlighting a potential blockage at the bottom of housing chains.
New figures from L&C Mortgages show the average first-time buyer deposit has reached 20.7% of the property’s value in 2026, with buyers purchasing homes costing more than £305,000 on average.
The size of the savings hurdle has implications beyond aspiring homeowners, with first-time buyers providing an important source of demand for existing owners looking to sell and make their next move.
L&C’s figures also show the average age of a first-time buyer has edged up to 33.
£70,000 HURDLE
Someone starting from scratch and saving £250 a month towards a £70,000 deposit would take around 16.5 years to reach the target, assuming savings interest of 4%, according to L&C.
Even putting away £750 every month would take just under seven years, while £1,200 a month would reduce the period to around four-and-a-half years.
David Hollingworth, Associate Director at L&C Mortgages, says: “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.”
HOUSING CHAINS
The figures underline the importance of first-time buyer affordability to activity across the wider housing market.
Delays in getting onto the ladder can potentially feed further up the chain where existing homeowners need to secure a buyer before making their next purchase.
However, the typical deposit being put down has actually fallen as a proportion of the purchase price, from more than 24% in 2023 to 20.7% this year.
L&C says a growing range of higher loan-to-value mortgages is giving buyers options with much smaller deposits, including products at 98% and 99% LTV and some deals requiring no deposit for eligible borrowers.
Hollingworth adds: “There’s a growing number of products aimed at helping first time buyers get onto the property ladder sooner, including options for those with smaller deposits and flexible income multiples.”
