Average UK first-time buyer deposit rises £10,000 in a year - and £20,000 in London

First-time buyer deposits rocketed by more than £10,000 last year, hitting new records across the UK.

In London, the typical new buyer deposit ballooned by £20,000 to more than £130,000, a property index by Halifax found.

Across the country, the average amount put down in 2020 was £57,278, compared with £46,449 the year before, marking a 23% increase, or £10,829 in cash terms.

Average deposits for first-time buyers in London were up by £20,211 (18%), from £110,145 to £130,357.

Other areas also saw big increases, with the average first-time buyer deposit growing by 25% (£6,634) in Wales, from £26,029 to £32,663.

Average deposits for first-time buyers in London were up by £20,211 (18%), from £110,145 to £130,357 (Getty Images)

Despite many low-deposit mortgages being pulled from the market in 2020 amid the coronavirus crisis, first-time buyers still made up half of home purchase loans last year, Halifax estimates, down from 51% in 2019.

The bank, which used UK Finance figures for part of its calculations, said the overall number of first-time buyers in 2020 was down by more than 46,000 compared with 2019, with an estimated 304,657 first-time buyers in 2020.

This was the lowest number since 2015, when there were 298,080 first-time buyers.

Get the latest money advice, news and help straight to your inbox - sign up at mirror.co.uk/email

Northern Ireland, Wales and Scotland were the parts of the UK with the biggest decreases in first-time buyers last year, while London experienced the smallest fall, Halifax found.

According to Office for National Statistics (ONS) figures, average UK house prices jumped to a record high of £250,000 in November and those in London broke through the £500,000 barrier for the first time.

A temporary stamp duty holiday and pent-up demand after the market was put on hold in the early part of 2020 have fuelled demand, with rising prices making life harder for those trying to get on the property ladder.

Overall, the number of first-time buyers in 2020 was down by more than 46,000 compared with 2019 (Getty Images)

Russell Galley, managing director, Halifax, said: "Whilst these figures confirm the almost inevitable fall in the overall number of first-time buyers in 2020 - with the entire housing market effectively shuttered during the first national lockdown - they also underline just how strong the bounceback was in the second half of the year.

"Despite the obvious challenges presented by soaring house prices, not least the need to raise an even bigger deposit, first-time buyers still accounted for half of all home purchases, a reassuring statistic given their overall importance to the market.

"However, with the economic impact of the pandemic likely to be felt most keenly by the young and those in lower-paid jobs, the need to prioritise improved housing availability and affordability for all those looking to make that first step on to the property ladder becomes ever greater."

How much you'll now need to get on the property ladder

• North East: £29,563

• Yorkshire and the Humber: £33,313

• North West: £34,347

• East Midlands: £39,052

• West Midlands: £42,062

• East Anglia: £51,126

• Wales: £32,663

• South West: £51,397

• South East: £64,910

• London: £130,357

• Northern Ireland: £29,523

• Scotland: £35,745

10 most affordable places in the UK for first-time buyers

1. Burnley, North West

2. East Ayrshire, Scotland

3. North Ayrshire, Scotland

4. Inverclyde, Scotland

5. West Dunbartonshire, Scotland

6. Renfrewshire, Scotland

7. South Lanarkshire, Scotland

8. Clackmannanshire, Scotland

9. North Lanarkshire, Scotland

10. North Down and Ards, Northern Ireland

10 least affordable places in the UK for first-time buyers

1. Islington, London

2. Brent, London

3. Hackney, London

4. Haringey, London

5. Newham, London

6. Hillingdon, London

7. Barnet, London

8. Hounslow, London

9. Hammersmith and Fulham, London

10. Lambeth, London