This Is How Much Money First-Time Buyers Need To Buy A Home

Soz, it's more bad news.

This Is How Much Money First-Time Buyers Need To Buy A Home

by Arianna Chatzidakis |
Updated on

More bad news for us first-time house buyers. According to a report by Halifax, the average deposit that we now need to put down to buy a house is a whopping £33,000. And if you live in London, then it's even worse, because you'll be expected to fork out up to £100,000.

Shockingly, the average first-time deposit in the UK has doubled over the last decade, while London prices have almost quadrupled during the same period. And on top of this, the average cost of a house now stands at an eye-watering £207,693, which is 50% higher than the average in 2012. That's pretty scary stuff guys. It's no wonder that the age for first-time buyers has crept up to 30 years old.

But before you go thinking that this surge will price you out of a home, there is some good news. Despite the dramatic increases, the number of first-time buyers grew by 7% in 2016 to 335,750, while just under half of all house purchases with a mortgage last year were made by first-timers. If you ask us, it's a surprise that any of us millennials are able to buy property, what with all of our impulsive brunch splurges on avocado on toast (the sarcasm is real).

But seriously, just how are we actually affording this? Well, Martin Ellis, Housing Economist at Halifax, said: 'First-time buyers play a crucial role in the housing market, and each transaction has an impact further up the chain, as well as helping to drive levels of housebuilding. Low mortgage rates, high levels of employment that have supported the market, and Government schemes such as Help to Buy have improved affordability, enabling more first-time buyers to buy their own property.'

So, there is hope for us after all. But seeing as 8 out of 10 of the most affordable local authority districts are in Scotland, we'll probably be avoiding buying property in London for the foreseeable future. Scotland here we come...

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Follow Arianna on Instagram: @ariannachatz

This article originally appeared on The Debrief.

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