Average deposit for a home now exceeds £80,000 says ...

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27 January 2016

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Average deposit for a home now exceeds £80,000 says mortgage broker

The average deposit for a property has risen 15 per cent in the past year and now stands at over £80,000 according to a mortgage broker.

A typical deposit is now £81,721; the average purchase price for a property is now £252,990 which is 9.3 per cent higher than a year ago.

The data, from the Mortgage Advice Bureau, says a typical buyer’s loan-to-value fell to 68.2 per cent in December, representing an annual decrease of 1.1 per cent.

The broker firm says this is the lowest LTV seen since June 2010, and suggests borrowers are shouldering more of the cost of their house purchase themselves.

The continuing volatility of the market can be seen by other data from MAB, which shows that affordability - based on the typical buyer’s income expressed as a percentage of property price - has been worsening for three months.

In December this stood at 15.3 per cent - a year ago, it was 17.3 per cent.

Mortgage Advice Bureau says it has seen a 2.9 per cent fall in the average salary of buyers from £39,983 in December 2014 to £38,820 last month. In contrast, house prices rose by 9.3 per cent.

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- Rob Davies
- 27 January 2016 09:24 AM
A sad indictment of our times. A ludicrous amount of money. Who can afford to cobble together £80,000 unless they have very rich parents, a very well-paid job, a very large inheritance or a lottery win? But I suppose the government would deem this as "affordable".

You can't even think about buying unless you're in a couple these days, it's just too expensive to do it on your own. No wonder people are living at home well into their forties, because rent isn't exactly kind on the wallet at the moment either.
Smile Please

27 January 2016 12:02 PM
I think you may have misread the information provided.

Average deposit or an average house. This will include investors and movers not just FTB's

Not many FTB's by an average house i.e. 3 bed semi they tend to start with a 1 bed flat

But i do agree house prices have spiraled out of control
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Rob Davies

27 January 2016 13:55 PM
Ah, fair enough.

Still, an £80,000 deposit for an average house seems very steep, no?

House prices are spiralling out of control and the government are doing nothing to stop it. Cameron and Osborne know full well that high house prices are propping up the economy - take that away and recession here we come. It means they can say the economy is growing even when it isn't.

They are restricting further supply to keep prices high. They say they are doing things to solve the housing crisis, but gimmicky rubbish like Help to Buy, Right to Buy and starter homes don't really cut the mustard. They're just there to make it seem like the government is taking the bull by the horns.

House prices rising to astronomical levels is seen as a good thing by the government, but it's nothing of the sort. It's not good for the economy, it's not good for agents, it's not good for sellers or buyers in the long-term. It's not sustainable. Until the government realise that it's only going to get much worse before it gets better.
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