Aspiring homeowners across the UK face a significant financial hurdle, with a new report revealing the daunting sums required for a house deposit and the years of saving needed to achieve it.
The National Picture and a Stark London Divide
Research from Nationwide Building Society, published on Tuesday 20 January 2026, shows that a 10% deposit on a typical first-time buyer property in the UK now averages around £23,000. Based on setting aside 10% of an average net monthly income of roughly £320, it would take a prospective buyer nearly six years to save this amount.
However, the figures vary considerably by region, reflecting the UK's profound house price divide. The most extreme example is London, where a first-time buyer typically needs to raise approximately £44,800 for a 10% deposit. This is over three times the amount required in some northern regions.
Andrew Harvey, Nationwide’s senior economist, highlighted the saving timeline disparity: "It would also take a Londoner nine years to save for their deposit versus around four years for someone buying in the North, based on saving 10% of their average net pay."
Regional Deposit Breakdown: From North East to Outer Metropolitan
The Nationwide analysis provides a clear regional snapshot of what a 10% deposit equates to in cash terms for an average first-time buyer property. The figures paint a picture of a multi-speed housing market:
- North East: £13,100
- Scotland: £13,900
- Yorkshire and the Humber: £15,400
- Wales: £17,300
- North West: £17,400
- East Midlands & Northern Ireland: £19,400
- West Midlands: £20,400
- East Anglia: £21,200
- South West: £24,700
- Outer South East: £26,300
- Outer Metropolitan: £32,800
- London: £44,800
Overcoming the Deposit Hurdle
Given the scale of the challenge, many first-time buyers are turning to additional sources of funds. Mr Harvey noted that in the 2024-25 period, over a third of first-time buyers received help raising a deposit, often through gifts or loans from family or friends, or via an inheritance.
Government-backed savings products like Lifetime Isas, which include a bonus on contributions, are also a popular tool for boosting deposit pots.
The report also sheds light on particular affordability challenges within certain employment sectors. For workers in sales, customer service, construction, manufacturing, cleaning, and courier roles, typical mortgage payments could swallow up around 50% of their average take-home pay.
Looking forward, Mr Harvey offered a cautiously optimistic note: "We expect housing market activity to strengthen a little further as affordability continues to improve gradually via income growth outpacing house price growth and a further modest decline in interest rates."
