How much more first-time buyers need to save to buy a house revealed – and Londoners are £70k short

THE majority of first-time buyers underestimate how much they need to save to get on the property ladder, according to new research.

Londoners need an average deposit of £118,531 to get on the ladder but most only expect to save £48,947 - leaving a gap of £69,584, according to Yorkshire Building society.

While those in South East England and East of England are short of £18,044 and £19,187 respectively.

Only potential home buyers in Yorkshire and Scotland are saving more than the average deposit for their area requires.

The depressing report is based on the average house price for first-time buyers in each region, compared with the corresponding average deposit.

The building society then asked almost 1,000 first-time buyers how much they were saving for their first property.

While the size of respondents is small, the building society claims it reveals the gap between current savings and the amount needed to actually get on the property ladder.

Chris Irwin, senior mortgage manager at Yorkshire Building Society, said: “While our research indicates first-time buyers in the majority of regions across the UK could do more to manage their financial expectations of buying a house, it serves as a reminder to potential homeowners of the importance of budgeting.

“When you’ve got a more realistic figure, it’s easier then to review your savings habits and work out what you’re able to save and over what period of time, to achieve your required goal.

"Breaking it down in this way, early on in the home-buying journey could really help first-time buyers.”

Research last June found that single first-time buyers need over a decade to save up for a deposit.

In May, we revealed how to get the best mortgage if you're a first-time buyer - and all you need is a 5 per cent deposit.

How to save up a deposit if you're a first-time buyer

At present you'll need at least 5 per cent of the property's value to get a mortgage.