House deposits rise 108% as buyers face 'no mean feat' to get on ladder
- Credit: PA
Suffolk experts have warned that "the path to home ownership has only become steeper" after new data revealed the deposit needed has risen by 108% in the last year.
The average house buyer in the East of England is now saving a deposit of £50,000 to get onto the property ladder in the UK - more than double the figure of £24,000 in 2021.
Joanne Leek, a mortgage expert from Suffolk Building Society, said: "The efforts by prospective buyers in the East of England to save an average sum of £50,000 is no mean feat and more significantly this has seen their deposit ratio increase too."
The new data also reveals that the average deposit size in the East of England has grown from 16.6% of the purchase price to 24% in the last year.
Mrs Leek offered her advice to prospective buyers looking to get their foot on the property ladder by recommending they gather the necessary documentation early and demonstrate a clear budget plan to their prospective lender.
She added: "Finally, although it can be tempting to keep increasing that maximum search value on Rightmove, remember to keep your expectations more realistic when searching for your new home."
The 108% increase in mortgage deposits in the East of England is over 40% higher than the national average of 76%.
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UK house buyers now save an average deposit of £33,000 to get onto the property ladder - up from £18,000 in January 2021.
Max Turner, who leads the new homes team at Savills in Suffolk, said: "With strong price growth across the housing markets the path to home ownership has only become steeper.
"Increased costs of living, higher national insurance and the prospect of a lower threshold for student loan repayments will also make saving for a deposit all the more challenging.
"Consequently it has become harder for some first time buyers to get on the housing ladder without assistance.
"Many of these buyers may well turn to the 'bank of mum and dad' and our own research is expecting this support to help 154,000 first-time buyers across the UK this year."