19 Apr

London buyers "need ever increasing" deposits

London buyers "need ever increasing" deposits

People looking to purchase property in Greater London have to save sustainably more of a deposit, according to new research.

A report from My Home Move reveals the average deposit for a property in the capital is almost three times or 170 per cent more than that of the rest of the UK.

Now standing at £127,000, the average deposit from London buyers has risen by £30,000 over the past three years and could mean many people are struggling to step on to the property ladder.

Elsewhere the average UK deposit size as a proportion of purchase prices has fallen by 1.8 per cent since 2013.

“The London property market has always commanded greater prices than anywhere else in the UK but our research has shown just how extreme the situation is becoming,” explained Doug Crawford, chief executive officer of My Home Move.

He added: “This situation is unsustainable and has been driven by rising house prices. For some, their deposit will come from the equity in the property they are selling. However, for many, they will still need to save tens of thousands of pounds to make the move onto and up the property ladder.”

According to the report, London property prices have risen by 27 per cent and increasingly buyers are having to rely on gifted deposits from relatives so they can become homeowners.ADNFCR-1222-ID-801816811-ADNFCR

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