August 8th 2024.
When it comes to buying a home, location is key. If you're looking to enter the property market, it's important to carefully consider where you want to live. This doesn't just mean finding the "worst house on the best street" or seeking out up-and-coming areas. The UK region you choose can have a significant impact on your journey to homeownership. Recent data from OnTheMarket reveals that the average deposit for first-time buyers across the country is now £53,414, which is a decrease from the previous year's amount of £62,471.
Unsurprisingly, London tops the list with an average deposit of £108,848, followed by the South East at £59,075. On the other end of the spectrum, the North East is the most affordable region with a deposit of under £30,000. This includes cities like Newcastle, Middlesbrough, and Sunderland, where you can get your keys for less than a third of what it would cost in London. Northern Ireland also ranks as one of the cheapest regions with an average deposit of £31,948, followed by Yorkshire and the Humber at £33,208.
However, even in the most affordable regions, the situation is still challenging. To put things into perspective, the median wage for a full-time employee in the UK is £34,963, and for those aged 20 to 29, it drops to £29,120. It's no wonder that it now takes six years longer for younger generations to buy their first home. And for many, moving to a cheaper area isn't an option due to family ties or limited job opportunities.
While London may have a higher average wage, the steep deposits required make it difficult for those in low-paid roles to achieve homeownership. This is especially true for those who are also struggling to pay high rents while trying to save. But don't lose hope just yet. The Mortgage Guarantee Scheme allows for a mortgage with a 5% deposit from participating lenders. This scheme is only available until June 30, 2025, but it's worth exploring to see if you're eligible.
While it may take some time and effort, there are ways to make homeownership a reality. One suggestion is to track your expenses and identify areas where you can cut back, such as unused subscriptions and standing orders. Mortgage expert Claire Flynn also recommends considering alternative living arrangements, like moving in with family or downsizing to a cheaper area. And if you haven't already, setting up a Lifetime ISA can help you save with a 25% tax-free bonus.
The key is to set manageable savings targets each month, which will eventually add up and bring you closer to your goal of owning a home. To give you an idea of the average first-time buyer deposit in different regions across the UK, here's a breakdown provided by OnTheMarket:
- Greater London: £108,848
- South East: £59,075
- East Anglia: £52,682
- South West: £49,135
- Scotland: £39,691
- West Midlands: £37,459
- Wales: £36,350
- East Midlands: £36,139
- North West: £35,581
- Yorkshire and the Humber: £33,208
- Northern Ireland: £31,948
- North East: £29,740
Do you have a story to share about your experience with buying a home? We'd love to hear from you. You can reach us by emailing [email address].
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