Number of first-time buyers at record levels but deposits have DOUBLED in last 10 years
The amount needed as a deposit to buy a home has more than doubled to £32,321 in the last ten years
RECORD numbers of first-time buyers climbed onto the property ladder last year - the highest number since the financial crisis in 2007.
But the amount that would-be home owners need to buy their first home has more than doubled in the same time.
Those buying their first property can expect to pay more than £200,000 across the UK generally and an "eye-watering" £400,000 in London, according to Halifax.
In 2006, the average first-time buyer deposit across the UK was £15,168. Now it is £32,321 - around 16 per cent of the price of a typical first home.
In London, a first-time buyer's deposit is more than £100,000 on average, assuming they can also cover moving costs and stamp duty.
First-time buyers in London put down a 25 per cent deposit on average in 2016, amounting to £100,445.
In 2016, the average house price paid by first-time buyers was £205,170 - the highest on record. This average has grown by 7 per cent over the last year, pushing it over the £200,000 mark/ In London, first-time buyers can expect to pay £402,692.
The number of first-time buyers is estimated to have reached 335,750 in 2016, Halifax said. This is the highest figure since 359,900 in 2007, and marks the third year in a row that the number has topped 300,000.
Halifax said the number of first-time buyers in 2016 was 75 per cent higher than a low point in 2009, but 17 per cent below a pre-crisis peak of 402,800 in 2006.
As the cost of housing has increased, first-time buyers have been taking out longer mortgages. In 2006, just over a third had mortgages lasting beyond the traditional 25-year period. In 2016, 60 per cent of mortgages were for 25 years or more.
In London, the average house price for a typical first-time buyer is now more than an eye-watering £400,000 with an average deposit of over £100,000
Martin Ellis, Halifax
More aspiring first-time buyers are also having to factor stamp duty into their costs. Less than a third of first-time purchases in 2016 were below the £125,000 stamp duty threshold. This share was 45 per cent in 2013.
The average age of a first-time buyer is 30, ranging from 27 in Carlisle in Cumbria and Torfaen in South Wales to 34 in places such as Slough in Berkshire and the London boroughs of Barnet and Ealing.
Martin Ellis, a housing economist at Halifax, said record low mortgage rates, high employment levels and Government schemes such as Help to Buy have helped first-time buyers. The UK-wide Help to Buy mortgage guarantee scheme ended in 2016, but other schemes are still available.
5 WAYS YOUR PARENTS CAN HELP YOU BUY YOUR FIRST HOME
One reason first-time buyers are having a better time of it is the increased role parents are playing in helping their kids buy their first property, but can you get help from the bank of Mum and Dad?
From helping out with the deposit, acting as a guarantor and even using their savings to help secure you a mortgage.
We explain more in our guide to parents helping children buy their first home.
He said: "Across the regions there is a contrasting picture. In London - which has one of the youngest populations in the UK - the average house price for a typical first-time buyer is now more than an eye-watering £400,000 with an average deposit of over £100,000 - more than twice that in the South East, the next most expensive region."
Halifax used a range of sources for the research, including its own housing statistics database and figures from the Council of Mortgage Lenders (CML) and the Office for National Statistics (ONS).
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