Prospective homeowners in London must save a deposit roughly three times larger than those in Scotland or northern England, according to a stark new analysis that lays bare the UK's regional property divide.
The Nine-Year Savings Marathon for Londoners
Research from Nationwide Building Society, published in January 2026, indicates that a typical 10% deposit for a first-time buyer property in the capital stands at a substantial £44,800. Based on saving 10% of the average net monthly pay, it would take a Londoner approximately nine years to accumulate this sum.
This timeline presents a formidable challenge, starkly contrasting with other parts of the UK. In the North East, a 10% deposit averages just £13,100, which could be saved in around four years. Scotland and Yorkshire and the Humber also present significantly lower hurdles, with required deposits of £13,900 and £15,400 respectively.
A Nation Divided by Deposit Demands
Andrew Harvey, Nationwide’s senior economist, highlighted the dramatic disparity. "A 10 per cent deposit on a typical UK first-time buyer property is around £23,000," he said. "However, the level of deposit required also varies considerably by region, reflecting differences in average house prices."
He emphasised that a London deposit is "over three times larger than the equivalent in the North." The full regional breakdown from Nationwide's calculations illustrates the gradient of affordability across the country:
- North East: £13,100
- Scotland: £13,900
- Yorkshire and the Humber: £15,400
- Wales: £17,300
- North West: £17,400
- East Midlands: £19,400
- 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
Family Help and Future Forecasts
With such high barriers to entry, many first-time buyers turn to external support. 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 through inheritance. Government-backed schemes like Lifetime Isas, which include a savings bonus, also provide a potential boost.
The research also identified sectors where mortgage affordability is particularly strained. For workers in sales, customer service, construction, manufacturing, and courier roles, typical mortgage payments could swallow around 50% of their average take-home pay.
Looking ahead, Mr Harvey offered a cautiously optimistic note for the broader market. "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," he stated.
This analysis underscores the profound impact of geography on the dream of homeownership in the UK, with the path to a first home remaining a multi-year marathon for many, especially in the high-pressure South.
