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Map reveals how much first-time buyers need to save and earn to buy a house based on YOUR postcode
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FIRST-TIME buyers need an £53,000 deposit and £63,000 salary to get on the property ladder in 2025, according to new data.
The exclusive data from Zoopla shows the average deposit and salary for anyone looking to get on the ladder based on their postcode.
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The figures are based on an average house price of £267,700 and a first-time buyer having a 20 per cent deposit.
The data uses Zoopla’s house price index, which tracks achieved sales prices, and UK Finance’s average income multiple of 3.4 – which is the amount a buyer can borrow as a multiple of their annual salary.
The latest Zoopla index is from December last year, and covers the whole of the UK.
The eye-watering sums of money required by first-time buyers are an increase on those produced five years ago in December 2019.
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Back then, the average house price stood at £220,300, with a 20 per cent deposit equating to just above £44,000.
At that time, it meant a first-time buyer would also need an average salary of at least £51,800.
It may have then seemed that affordability was already stretched to breaking point, but the figures continued to increase - by around £10,000 in five years for both the average deposit and salary requirements.
Use our map to check what the average deposit is based on your postcode
This is based on the average house price for your area
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The property website also revealed the ten postcode areas with the highest average deposit required by first-time buyers to get onto the property ladder.
The Sun's James Flanders explains how to find the best deal on your mortgage
It is perhaps unsurprising that the majority in the top 10 are in London where house prices tend to be higher.
The postcode area “WC” leads the way with an average house price of £844,700.
The two letters stand for Western Central and include the London districts of Covent Garden, Holborn, Bloomsbury and St Pancras.
It means a 20 per cent deposit in this postcode would equate to £168,940.
Also in the top ten is the postcode area “KT” - which stands for Kingston-Upon-Thames - where the average house price is £588,900, and a 20 per cent deposit is £117,780.
West London and St Alban are also included in the top ten, with average house prices of £775,900 and £519,500, and 20 per cent deposits equating to £155,180 and £103,900 respectively.
Ranked in tenth position is the postcode of Bromley, where the average house price is £514,100, and a 20 per cent deposit would be £102,820.
What help is out there for first-time buyers?
GETTING on the property ladder can feel like a daunting task but there are schemes out there to help first-time buyers have their own home.
Help to Buy Isa - It's a tax-free savings account where for every £200 you save, the Government will add an extra £50. But there's a maximum limit of £3,000 which is paid to your solicitor when you move. These accounts have now closed to new applicants but those who already hold one have until November 2029 to use it.
Help to Buy equity loan - The Government will lend you up to 20% of the home's value - or 40% in London - after you've put down a 5% deposit. The loan is on top of a normal mortgage but it can only be used to buy a new build property.
Lifetime Isa - This is another Government scheme that gives anyone aged 18 to 39 the chance to save tax-free and get a bonus of up to £32,000 towards their first home. You can save up to £4,000 a year and the Government will add 25% on top.
Shared ownership - Co-owning with a housing association means you can buy a part of the property and pay rent on the remaining amount. You can buy anything from 25% to 75% of the property but you're restricted to specific ones.
Mortgage guarantee scheme - The scheme opens to new 95% mortgages from April 19 2021. Applicants can buy their first home with a 5% deposit, it's eligible for homes up to £600,000.
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