As the housing market reopens in England new analysis by Rightmove shows the average first-time buyer 10% deposit is currently £24,189, jumping to £36,284 if a 15% deposit is needed.
The current average asking price of a typical first-time buyer property in England is £241,891, which is 2% higher than this time last year. There is a total of £60bn worth of property in this sector currently listed on Rightmove.
Analysis of first-time buyer deposits needed in 20 cities across England shows the wide disparity of the asking price of property:
- The biggest deposit is needed in London where an average 10% deposit is £47,757 and an average 15% deposit is £71,635
- The smallest deposit is needed in Bradford where an average 10% deposit is £8,995 and an average 15% deposit is £13,492
Rightmove said some lenders may bring back lower deposit mortgages now the market is open again in England, but until availability becomes widespread again it’s likely many first-time buyers will need to consider a 15% deposit to buy a home in the current market.
Since the housing market reopened in England last week, Rightmove said demand for property has been “steadily increasing”.
The number of full property details viewed on Rightmove, a sign of serious buyers looking at pictures, descriptions, videos and floorplans, has recovered from a 35% drop as the housing market closed to now being up 2% on this time last year.
A survey by Rightmove during lockdown found that 94% of first-time buyers were determined to continue with their plans to get their first step on the housing ladder when they were allowed to do so.
Rightmove’s commercial director and housing market analyst, Miles Shipside, said: “Many first-time buyers looking to grab a bargain right now may find they’re disappointed, as on the whole asking prices of all first-time buyer properties up for sale have been holding up.
“There will of course be some sellers who need to sell quickly and may be willing to negotiate on price so it’s worth asking your local agent if there’s any with this predicament if you do now need to lower your budget.”
He added: “However, where demand is outstripping supply and it’s an attractive property in a desirable location then an offer closer to the asking price will have a better chance of being accepted.
“If a property is over-priced it’s usually pretty obvious by looking at similar properties up for sale on Rightmove in the same area, or by using sold prices to find out how much properties nearby sold for recently, so this should help prospective buyers feel more confident that they know how much they should be offering.”