Deposits still high
HIGH deposit fees are still preventing many people from getting on the property ladder, the study by the Halifax has found.
The study said that as a proportion of the purchase price, the typical deposit has soared from 10 per cent in 2007 to 20 per cent in 2011.
The average first-time buyer deposit in the first 11 months of 2011 was £27,032 up from £17,482 in 2007.
First-time buyers in Greater London typically put down the biggest deposits, averaging £60,192 and a quarter of the average property value.
Buyers in the north had the smallest deposits - averaging £14,882 and 15 per cent of the value of their home.
Lenders have gradually been bringing back deals requiring lower deposits, but there have been complaints that the terms of the mortgages are too restrictive, according to the study.
The study also found that the vast majority of areas with affordable homes are outside the South of England. No districts in London are deemed affordable while all districts in the North East are.
Three quarters of areas are affordable in the North East, North West, Yorkshire and the Humber, East Midlands, West Midlands, Scotland, Wales and Northern Ireland.
This compares with just five per cent in the south, comprising Greater London, the South East, the South West and the East of England.
The study also looked at the consequences of ending the current holiday on stamp duty for first time buyers this spring. It predicts that 38 per cent more first-time buyers, and 43 per cent in total, will have to pay stamp duty once the government’s concession ends in March next year.