Prospective first-time buyers in London face a daunting financial hurdle, needing to save nearly three times as much for a deposit as their counterparts in Scotland and northern England, according to a major new analysis.
The Stark Regional Divide in Deposit Sizes
Research conducted by Nationwide Building Society and released in January 2026 paints a challenging picture for those trying to get on the property ladder in the capital. The study estimates that a typical first-time buyer in London must raise around £44,800 for a 10% deposit.
This figure stands in sharp contrast to other regions. In the North East, the required 10% deposit is approximately £13,100, while in Scotland it is around £13,900. For Yorkshire and the Humber, the sum is about £15,400.
Andrew Harvey, Nationwide’s senior economist, explained the national context. "A 10% deposit on a typical UK first-time buyer property is around £23,000," he said. "Even based on saving 10% of average net pay (around £320) per month it would take a prospective buyer nearly six years to accumulate this."
The Nine-Year Savings Marathon for Londoners
The time required to save these sums varies dramatically across the country, directly impacting how long aspiring homeowners must wait. Nationwide's analysis suggests it could take someone in London nine years to save a 10% cash deposit.
This is a full five years longer than for some people trying to get on the property ladder in parts of northern England, where the timeline can be as short as four years.
"A 10% deposit in London is over three times larger than the equivalent in the North," Mr Harvey stated. "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."
Vital Support from Family and Savings Schemes
Given these formidable challenges, many first-time buyers turn to additional sources of help. The report highlights that financial assistance from loved ones is often crucial for those trying to increase their deposit size.
Mr Harvey revealed that in the 2024-25 period, over a third of first-time buyers were estimated to have received some help raising a deposit. This aid came either as a gift or loan from family or friends, or through an inheritance.
Savings vehicles like the Lifetime ISA, which includes a government bonus, are also pointed to as a potential way for buyers to boost their deposit funds more quickly.
The research also sheds light on particular affordability challenges within certain employment sectors. For those working in sales, customer service, construction, manufacturing, or as cleaners and couriers, typical mortgage payments could represent around 50% of their average take-home pay.
Looking forward, Mr Harvey offered a note of cautious optimism: "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."
Here are the 10% deposit amounts for average first-time buyer properties across UK regions, according to Nationwide:
- Outer South East: £26,300
- Outer Metropolitan: £32,800
- London: £44,800
- 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
