First-time buyers face a £59k bill for a deposit

First-time home buyers in the North East face having to find nearly £6,000 more for a deposit than they would have done a year or so ago, analysis has found.

The typical deposit that a first-time buyer needs to put down on a property has increased in every region over the past year.

It now averages nearly £59,000, according to the research from Halifax.

Its figures show that, in February 2020, the average first-time buyer house price in the region was £138,406, with an average deposit of £24,582 – 18%.

In February this year, the average house price was £149,183, with a deposit of £30,318 – 20%.

Nationally, the average first-time buyer has to find nearly £12,000 more for a deposit than they would have done a year or so ago.

This figure has risen to nearly £59,000.

Andrew Asaam, mortgages director at Halifax, said: "We know that lockdown restrictions have made it more practically challenging for those buying and selling, but the stamp duty holiday has helped drive record levels of mortgage approvals as those held back by lockdown race to make savings.

"We know that firsttime buyers will benefit from steps that make a deposit more attainable and we're committed to lending £10billion to help people buy their first home this year.

"Additional support for high loan-to-value (LTV) lending such as introducing a new version of the Help to Buy mortgage guarantee scheme in April will help make owning their own home a reality for those who have no other way of making it happen."