Average deposit soars to £40k, report shows |
27 2008 |
| Would-be first-time buyers now face the prospect of having to find £40,000 before they are able to purchase their own place, new figures show. Coming as the global credit crunch shows no sign of slowing down, a study carried out by Mform.co.uk found that the economic uncertainty is prompting the nation's lenders to get even stricter, with most looking to avoid giving loans to first-time buyers. As such, the average deposit needed for a house now stands at 20.75 per cent, up from 11.75 per cent last year. Given that the average house price is currently £180,800, those looking to move out of the rental sector will need to save up £37,512, equivalent to almost twice the average salary. Francis Ghiloni of the firm further warned: "First-time buyers or those who have entered the property market recently will struggle to qualify for the most competitive rates." Unsurprisingly, renting looks the most attractive option in London and the south-east of England, where the average deposit needed now stands at £71,616 and £46,823 respectively.  |
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