- London buyers may need close to nine years to save a 10 per cent deposit
- The same deposit can take around four years in parts of northern England
- Family support continues to play a key role for many first-time buyers
A first-time buyer in London typically needs to raise around three times more cash for a 10 per cent deposit than someone buying in Scotland or parts of northern England, according to new analysis by Nationwide Building Society.
The figures highlight just how uneven the path onto the property ladder has become. While a buyer in London may need close to £44,800 to secure a 10 per cent deposit on a typical home, the same percentage equates to about £13,100 in the North East and £13,900 in Scotland.
Same percentage with different reality
Nationwide estimates that a 10 per cent deposit for a typical UK first-time buyer property is around £23,000. Based on saving 10 per cent of average net monthly pay, roughly £320, it could take nearly six years to reach that amount.
The timeline stretches much further in the capital. A London buyer saving at the same rate may need around nine years to build a deposit, compared with roughly four years for someone buying in parts of northern England, the analysis suggests.
In Yorkshire and the Humber, a first-time buyer would typically need to raise about £15,400 for a 10 per cent deposit, still far below the level required in London.
Andrew Harvey, senior economist at Nationwide, reportedly said the size of deposits varies widely across regions because of differences in average house prices. A 10 per cent deposit in London is more than three times higher than the equivalent in many northern areas, he added, as quoted in a news report.
Help from family still matters
For many buyers, saving alone is not enough. Harvey reportedly said that in 2024-25, more than a third of first-time buyers were estimated to have received help with their deposit, either through a gift or loan from family or friends, or via an inheritance.
Tools such as Lifetime Isas can also help boost savings through government bonuses, though these may still fall short in higher-priced regions.
Looking ahead, Harvey suggested housing market activity could strengthen slightly as income growth begins to outpace house price growth and interest rates ease modestly. However, affordability remains tight in several job sectors. He reportedly noted that for workers in roles such as sales, customer service, construction, manufacturing, cleaning and courier services, typical mortgage payments could take up around 50 per cent of average take-home pay.
The figures underline a simple point: while a 10 per cent deposit sounds the same everywhere, where you live can make all the difference to how realistic home ownership feels.
