Homebuyers in England and Wales need to find a deposit of nearly £26,500 on average, according to new research from Castle Trust.
Its analysis of the 30 biggest cities and regions in England and Wales shows the average deposit needed to put down 20 per cent of the purchase price is £26,468. Borrowers can secure a mortgage with a smaller deposit but the CML says the average transaction takes place where the borrower has a 20 per cent deposit.
The research shows a massive regional difference in the size of the deposit borrowers need to save, ranging from £14,470 to £72,760.
Homebuyers in London need an average of £72,760 in savings or equity to secure a 20 per cent deposit. This is double the average deposit needed in the second most expensive area to buy – £39,789 – which is Reading.
In Blackburn, the deposit is a fifth of the London average at £14,470 and more than £1,200 lower than Blackpool, the next most affordable at £15,707.
Castle Trust chief executive Sean Oldfield says: “Parents and grandparents are being called on more and more to help children with their first deposit and the proportion of the population owning their own home without family help is likely to continue to fall.
“Aspiring homeowners need alternatives to borrowing from family which is why the Government has launched a range of initiatives including NewBuy and FirstBuy.”
See table below for the cities and regions requiring the highest and lowest deposits (click to enlarge):