How much must first-time purchasers pay to climb the real estate ladder?

According to Nationwide, the average first-time buyer in the UK will need to save for approximately six years in order to reach a ten percent deposit

However, how much is required to fulfill your dream of climbing the real estate ladder?

Many first-time buyers may feel that the real estate market is unattainable because house prices are at all-time highs.

According to the Land Registry's most recent house price index data, the average price of a property in the UK is 271,188.

The Nationwide Building Society states that first-time buyers typically require a deposit of 23,000, but the exact amount will vary depending on the location.

We examine how, in today's market, first-time buyers can accomplish their ultimate objective.

To climb the property ladder, how much do I need?

According to Nationwide's most recent Affordability Report, a first-time buyer would need to set aside about 320 per month for nearly six years to cover a 10 percent deposit (23,000) on a typical UK property.

The amount required for deposits, however, varies greatly depending on the location of the purchase.

In London, a 10 percent deposit would cost first-time buyers 44,800, which is three times more than in the North of England (13,100).

According to Nationwide, a buyer in the capital would need to save 10% of their average monthly income for nine years, as opposed to four years in the North, in order to accumulate enough funds for a 10% deposit.

According to Nationwide senior economist Andrew Harvey, "a significant proportion" of first-time purchasers now depend on financial assistance from friends and family to accumulate funds required for deposits.

"More than one-third of first-time (UK) buyers had some assistance raising a deposit in 2024/25, either through an inheritance or a gift or loan from family or friends," he stated. A "

According to data from trade organization UK Finance in 2025, the so-called Bank of Mum and Dad is usually assisting homebuyers in nearly doubling their deposits. According to the study, first-time homebuyers who receive assistance from family members are able to purchase a property at an average age of 30, whereas those who do not are usually 32 years of age or older.

The most recent Nationwide data, according to Nathan Emerson, CEO of Propertymark, a trade association for real estate brokers, is "encouraging" but "underlines that homeownership remains out of reach for many, particularly those on lower and middle incomes".

"The fact that a typical first-time buyer still needs to save for a 10% deposit, especially in London and the South of England, shows just how significant the deposit barrier remains," he stated. The "

How first-time buyer activity was influenced by increased affordability in 2025.

The good news is that first-time buyers' affordability improved in 2025 as a result of declining mortgage rates and incomes rising more quickly than home prices.

According to Moneyfacts, the average mortgage rate decreased between January 2025 and January 2026 from 5.4 percent to 4.91 percent.

In 2025, more first-time homebuyers were able to obtain a property with a 15 percent or less down payment. In general, there were 20% more first-time homebuyers than there were in 2024.

In the meantime, nearly 55% of all homes purchased in 2024 were purchased for the first time.

The regional differences in affordability in 2025.

According to Nationwide, between 2024 and 2025, affordability improved throughout the United Kingdom, with the exception of Northern Ireland, based on the average mortgage cost as a percentage of people's income.

Due to the robust house growth in Northern Ireland, where prices increased by 9.7 percent in 2025, affordability declined.

London saw the biggest improvement in affordability for the second consecutive year, which was due to lower interest rates, a "solid" increase in earnings growth, and weak house price growth. The capital is still the UK's most expensive area, though.

According to Nationwide, the North of England, Scotland, Yorkshire, and the Humber had the most affordable prices.

Some advice on how to save for your first house.

If owning a first-home seems far off, there are things you can do to help you save for it.

Spend more wisely.

January is a great month to review your financial situation and adjust your spending plan in order to increase your monthly mortgage savings.

"Take a critical view of what you're spending each month and identify where you can cut back," stated Angela Kerr, director of the real estate advice website HomeOwners Alliance. A "

Kerr mentioned banking apps that allow you to create distinct pots, such as one for a house deposit, to which funds can be transferred as soon as you receive payment.

It's important to make sure you're getting the best savings rate available, she added. If your savings are in an account that pays less than the current rate of 3.4 percent inflation, you are actually losing money.

Maintain current information.

Maintaining basic administrative records can demonstrate to a lender your responsibility and likelihood of making mortgage payments.

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

Making sure you regularly make payments on time, including credit card payments, is also beneficial.

Pre-move, avoid making major changes.

Avoid making significant life changes, such as changing careers, obtaining new credit, or making significant financial commitments like getting married, before applying for a mortgage.

This can reduce the number of lenders who might be willing to give you a mortgage, according to Mendes.