How much first-time buyers need to get onto the property ladder

With house prices sitting at record highs, for many first-time buyers, the property market may feel as though it is out of reach.

The average UK property price is £271,188, based on the latest house price index data from the Land Registry.

The average deposit first-time buyers need is £23,000, according to Nationwide Building Society, but how much you actually need will depend on where you buy.

We look at how first-time buyers can reach their ultimate goal in today’s market.

How much do I need to get onto the property ladder?

A first-time buyer would need to put aside around £320 per month for almost six years to cover a 10% deposit (£23,000) on a typical UK property, according to Nationwide’s latest Affordability Report.

However, there are vast differences in the amount needed for deposits based on where someone is buying.

First-time buyers would need £44,800 to lay down a 10% deposit in London, three times higher than in the North of England (£13,100).

Nationwide said someone buying in the capital would need to save for nine years to build up enough money for a 10% deposit, versus four years in the North, based on saving 10% of their average net pay each month.

Andrew Harvey, senior economist at Nationwide, said “a significant proportion” of first-time buyers was now relying on financial help from friends and family to build up money needed for deposits.

He said: “In 2024/25, over a third of first-time (UK) buyers had some assistance raising a deposit, either in the form of a gift or loan from family or friends, or through an inheritance.”

The so-called Bank of Mum and Dad is typically helping homebuyers nearly double their deposits, according to data from trade body UK Finance in 2025. It found first-time buyers who get help from loved ones are able to buy a home at the average age of 30, while those purchasing without support are typically 32 or older.

Nathan Emerson, chief executive officer of Propertymark, a trade body for estate agents, said the latest data from Nationwide was “encouraging” but “underlines that homeownership remains out of reach for many, particularly those on lower and middle incomes”.

He said: “The fact that a typical first-time buyer still needs close to six years to save for a 10% deposit shows just how significant the deposit barrier remains, especially in London and the South of England.”

How improved affordability drove first-time buyer activity in 2025

The good news is that affordability improved for first-time buyers in 2025 due, in part, to incomes rising faster than house prices, and with mortgage rates on the slide.

The average mortgage rate fell from 5.4% to 4.91% between January 2025 and January 2026, according to Moneyfacts.

More first-time buyers were able to secure a home with a deposit of 15% or less in 2025 as well. Overall, the number of first-time buyers looking to purchase a home was 20% higher than in 2024.

Meanwhile, first-time buyers made up almost 55% of all homes bought in 2024.

How affordability varied across the regions in 2025

Nationwide said all parts of the UK, barring Northern Ireland, saw an improvement in affordability between 2024 and 2025, based on the costs of a typical mortgage as a share of people’s earnings.

Northern Ireland saw a decline in affordability due to the strong house growth seen there – prices rose by 9.7% in 2025.

For the second year in a row, London saw the largest improvement in affordability, reflecting weak house price growth, a “solid” rise in earnings growth and lower interest rates. However, the capital is still the least affordable region in the UK.

Affordability was highest in the North of England, Scotland and Yorkshire and the Humber, Nationwide said.

Tips to help you save for your first home

There are steps you can take to help you save for a first-home if ownership looks miles away for you.

Spend smarter

January is an ideal time to revisit your finances and make changes to your budget so you can save more each month towards a mortgage.

Angela Kerr, director of the property advice website HomeOwners Alliance, said: “Take a critical view of what you’re spending monthly and identify where you can cut back.”

Kerr pointed to banking apps that let you set up separate pots, like one for a house deposit, where money can be directed as soon as you get paid.

She also said it’s worth checking you’re getting the best savings rate available. Inflation is currently at 3.4% so if your savings are in an account paying any less than this, you’re actually losing money in real terms.

Keep your details up to date

Keeping simple administrative details up to date can prove to a lender you’re responsible and likely to make repayments on a mortgage.

Nick Mendes, mortgage technical manager at broker John Charcol, said: “Be on the electoral roll, keep your address history consistent, and make sure your credit files are clean across the main agencies.”

It also helps to make sure you’re consistently making payments, such as credit card payments, on time.

Avoid big changes pre-move

Try not to make big life changes before applying for mortgages, such as changing jobs, taking on new credit or making large financial commitments like a wedding.

Mendes said this can narrow the amount of lenders who may be willing to offer you a mortgage.