What is the average deposit for first time buyers

The average deposit for first time buyers in the UK was £61,090 in 2024, according to Halifax. That is around 20% of a typical first home, and it is a lot of money to find.

That headline figure only tells part of the story. In fact, many buyers put down far less, and plenty get a mortgage with just 5%. So this guide explains what the average deposit for first time buyers really means. It also shows how the number changes across the UK. Finally, it looks at how you can build yours faster.

What is the average deposit for first time buyers in the UK?

Halifax publishes the most quoted figures. Its latest review covers 2024. According to that review, the average deposit for first time buyers was £61,090. That is about 20% of the average price paid, which was £311,034.

The deposit was also around £7,500 higher than in 2023. In other words, it rose by 14% in a single year.

Here are the key numbers in one place.

Halifax first-time buyer figures for 2024
Average deposit	£61,090
Average price paid	£311,034
Deposit as a share of price	About 20%
Number of first-time buyers	341,068 (up 19% on 2023)
Share of mortgage-funded home purchases	54%
Average age	33
Bought in two or more names	62%

These are the most recent full-year Halifax figures we could verify at the time of writing, in October 2026. However, Halifax tends to publish its next review early in the year, so check for an update.

Two things stand out. First, 62% of first-time buyers bought in two or more names, so most are pooling two incomes and two sets of savings. Second, Halifax says the average first-time buyer home costs around 6.6 times the average UK salary. As a result, buying alone is a steep climb.

Why the average deposit for first time buyers is not the whole story

An average can mislead. For example, a handful of very large deposits pull the number up, especially in London and the South East.

The English Housing Survey gives a useful second view, and it is published on GOV.UK. For 2023-24, it found the mean deposit was £55,372. However, the median was just £32,700.

Here is the plain English version. The mean adds every deposit up and divides by the number of buyers. The median, on the other hand, is the buyer in the middle. So half paid less than £32,700, and half paid more.

The same survey also found that around three in five first-time buyers (60%) paid less than 20%. Meanwhile, one in five put down under 10%. Another 40% put down between 10% and 19%.

So when someone asks about the average deposit for first time buyers, there are really three answers:

• About £61,000 is the Halifax average.
• About £33,000 is the middle buyer in the English Housing Survey.
• 5% of the price is where many lenders start.

The two sources use different methods and different years. Therefore, treat them as two views of the same market, not one rule.

Average deposit for first time buyers by nation and region

Where you buy matters more than almost anything else. After all, prices vary hugely, and so do deposits.

Halifax found the average Scottish first-time buyer put down £43,537 in 2024, up 8% on 2023. In Northern Ireland, meanwhile, the figure was £37,898, on a typical home value of £194,323.

Average first-time buyer deposit, 2024 (Halifax)
UK	£61,090
Scotland	£43,537
Northern Ireland	£37,898

Parts of London, however, tell a very different story. In Hammersmith and Fulham, Halifax found the average first-time buyer paid £622,115. That is more than ten times the average local salary of £64,646. At the other end, County Durham was named the most affordable place in England to buy a first home.

Saving in a high-price area? Then the national average deposit for first time buyers may feel a world away from your own target. So look up local prices before you set a goal. Otherwise, you risk false hope, or false worry.

Why the average deposit for first time buyers keeps rising

Prices have climbed faster than wages for years, so the savings pot has to grow as well. For instance, Halifax found the average first-time buyer was 33 in 2024. That is two years older than a decade earlier, and the oldest in two decades.

Behind that number are real choices. People rent for longer, and they save for longer. In addition, many move back in with family to speed things up. As a result, a higher average deposit for first time buyers means a longer wait. The age figure shows it.

The good news is that the average deposit for first time buyers is not a hurdle you must clear. Instead, it is simply the typical figure. Plenty of people buy with less, and the next sections show how.

How much deposit do you actually need?

Most lenders want at least 5% of the property price. On a £250,000 home, for example, that is £12,500.

The share you borrow against the value of the home is called the loan to value, or LTV. A 5% deposit means a 95% LTV, while a 20% deposit means an 80% LTV. Generally, the lower your LTV, the more choice you have. Your rate is usually lower too.

Low-deposit routes do exist. For instance, the Mortgage Guarantee Scheme lets lenders offer 95% mortgages. A government guarantee backs them. In May 2026, Halifax also launched a first-time buyer mortgage that needs just £5,000 down. However, deals like this often come with tighter rules on income and rates, so read the small print.

Worked example: what a bigger deposit does to your payments

Take a £250,000 home. We have assumed a 25-year repayment mortgage at an illustrative 5% rate.

Deposit	Deposit amount	Mortgage	Monthly payment
5%	£12,500	£237,500	£1,388
10%	£25,000	£225,000	£1,315
20%	£50,000	£200,000	£1,169

The gap between a 5% and a 20% deposit is about £219 a month. We have used the same rate in every row to keep it simple. In real life, however, a bigger deposit often earns a lower rate too, so the true gap can be wider. Rates also change often. Therefore, treat this as an illustration, not a quote.

How lenders look at your deposit

A lender does not just count your savings. Instead, it checks whether you can afford the monthly payments. That means looking at your income, your regular bills and your credit record.

Many lenders cap borrowing at around 4.5 times your income, although some go higher. Your deposit then sits on top of that figure to give your total budget. For example, a £50,000 income at 4.5 times gives £225,000 of borrowing. Add a £25,000 deposit and your budget is about £250,000.

Lenders also check where your deposit came from. Savings built up over time are simple to prove. However, a large sum that appears overnight will raise questions. So keep your bank statements, as you will need them.

In short, the average deposit for first time buyers is only one part of the picture. A smaller deposit with strong income and a clean credit record can beat a bigger one with weak affordability.

Deposit is not the only cost

Your deposit is the big cheque. However, it is not the only one.

In England and Northern Ireland, first-time buyers pay no Stamp Duty on the first £300,000 of a home. They then pay 5% on the slice between £300,001 and £500,000. Above £500,000, the relief disappears. The official GOV.UK guidance on first-time buyer relief sets out the rules.

Here is what that means in practice:

• On a £250,000 home, the Stamp Duty bill is nil.
• On a £450,000 home, you pay 5% on £150,000. That is £7,500.
• On a £550,000 home, no first-time buyer relief applies at all.

Scotland and Wales, meanwhile, have their own property taxes with different rules, so check which applies to you.

Then there are the smaller costs. Legal fees, a survey, a valuation, lender fees and the cost of moving all add up. Yet many buyers forget them until late in the process. Build a cash buffer on top of your deposit. That way, a surprise bill will not derail the purchase.

How people fund their deposit

Most first-time buyers still save the money themselves. In fact, the English Housing Survey found that 85% used savings. Around 31% also had help from family or friends, and 9% used an inheritance.

Help from family is now a normal part of the picture. If a relative gifts you money, your lender will usually want a letter. It confirms the money is a gift, not a loan. In addition, your solicitor will check where the money came from.

If you are the one giving, however, large gifts can matter for inheritance tax. Gifts are often free of tax if the giver lives for seven years afterwards. Even so, it is worth getting advice before you hand over a big sum.

Joint buying is the other big route. Indeed, 62% of Halifax's first-time buyers bought in two or more names. Sharing the load is the norm, not the exception.

Ways to build a deposit faster

There is no magic trick. But some routes can speed things up.

Use a Lifetime ISA. You can pay in up to £4,000 each tax year, and the government adds a 25% bonus worth up to £1,000 a year. However, you must open it between the ages of 18 and 39, and the home must cost £450,000 or less. Also, if you take money out for anything else, a 25% charge applies. That can leave you with less than you paid in. For example, three years of full saving would give £12,000 plus a £3,000 bonus, before any interest.

Set up a standing order. Saving £500 a month reaches £12,500 in 25 months. At the same pace, however, it would take just over ten years to reach £61,090. That shows how far the average deposit for first time buyers can stretch a single income.

Look at shared routes. With Shared Ownership, you buy a share of the home and pay rent on the rest, so your deposit is based on the share. Meanwhile, the First Homes scheme offers a discount of 30% to 50% on some new-build homes in England. Check the GOV.UK First Homes page for the current rules and income limits.

Tidy up your credit file. A stronger credit record can open up better rates. In some cases, that matters as much as a few extra thousand pounds in the pot.

Ask about family help. If it is on offer, agree the terms early. After all, a clear gift is easier for lenders to accept than a vague one.

Should you wait or buy with a smaller deposit?

This is the question we hear most, and there is no single right answer.

A bigger deposit can mean lower payments and a wider choice of lenders. On the other hand, a smaller one can get you on the ladder sooner. The catch is that you borrow more and have less cushion if prices fall. Rent, job security and your plans for the next five years all matter too.

The average deposit for first time buyers is a useful guide. However, it is not a target you must hit. What counts is a deposit that works for your income, your costs and your plans.

A regulated mortgage adviser can look at the whole picture. For instance, they can check what you could borrow, compare lenders and flag costs you may have missed. You can find a regulated financial adviser through Regulated Advice.

 

Frequently asked questions

Is £10,000 enough for a first-time buyer deposit?

It can be, depending on the price of the home. For example, £10,000 is 5% of a £200,000 property. However, most lenders also look closely at your income and credit record.

What is the average deposit for first time buyers as a percentage?

Halifax puts it at about 20% of the purchase price for 2024. However, many buyers put down less, and some lenders start from 5%.

Can I use a gifted deposit?

Yes, most lenders accept one. They will usually want a signed letter confirming the money is a gift, with no repayment attached.

Do I need a deposit for every first-time buyer scheme?

Most still need one, though the amount can be small. For example, Shared Ownership bases your deposit on the share you buy.

How long does it take to save a first-time buyer deposit?

It depends on what you can put aside. For example, saving £500 a month takes just over two years to reach £12,500. By contrast, it takes about ten years to reach the £61,090 average. A Lifetime ISA bonus can also shave some time off.

Does a bigger deposit always mean a lower rate?

Not always, but it often does. That is because lenders price their deals in bands, such as 90% and 80% LTV. Crossing into a lower band can therefore unlock a cheaper rate. So ask a broker to show you the bands.

 

Final summary

The average deposit for first time buyers was £61,090 in 2024, around 20% of the price paid. However, the middle buyer put down less, and many lenders will start from 5%. Ultimately, your own figure depends on where you buy, your income and the help you can get.

So set a target, check your local prices and count the extra costs. Also, use schemes like the Lifetime ISA if they suit you. Finally, talk to a regulated adviser before you commit. After all, a solid plan will always beat chasing an average.

This article is for general information only and is not personal advice. Tax rules and scheme details can change, so check current guidance before you act. Your home may be repossessed if you do not keep up repayments on a mortgage or other loan secured on it.