Nationwide said first-time buyers accounted for a higher-than-average share of house purchase activity, with high loan-to-value lending at its highest level for over a decade

First-time buyers in London need a 10% deposit of around £44,800 to buy a typical home – more than double the UK average of £23,000 and over three times the amount required in parts of northern England or Scotland, according to Nationwide.

Buyers in the North East would typically need £13,100, while a 10% deposit in Scotland would be about £13,900 and in Yorkshire & the Humber £15,400.

At current saving rates of 10% of average net pay, around £320 a month, it would take nearly six years for a typical UK buyer to accumulate a 10% deposit of £23,000. In London, the same target would take about nine years, compared with four years in the North.

Even based on saving 10% of average net pay, it would take a prospective buyer nearly six years to accumulate this, said Andrew Harvey, Nationwide’s senior economist. However, the level of deposit required also varies considerably by region, reflecting differences in average house prices.

The high cost of deposits has meant many buyers continue to rely on family support. In 2024-25, over a third of first-time buyers received help from friends or family, either as a gift, loan, or inheritance. Some may also use lifetime ISAs to boost savings, Nationwide said.

Despite these hurdles, affordability has improved across much of the UK over the past year, supported by slower house price growth, stronger earnings, and falling mortgage rates.

Nationwide said first-time buyers accounted for a higher-than-average share of house purchase activity, with high loan-to-value lending at its highest level for over a decade. Activity was about 20% higher than in 2024.

Nationwide’s main affordability benchmark shows that a buyer on the average UK income purchasing a typical first-time buyer property with a 20% deposit would face monthly mortgage payments equal to 32% of take-home pay, slightly above the long-run average of 30% but well below the 48% high recorded in 1989. The first-time buyer house price-to-earnings ratio improved to 4.7, slightly below its 20-year average.

Regionally, London recorded the largest improvement in affordability for the second year running, helped by weak price growth and lower interest rates, though it remains the least affordable region.