A new report has found that the average deposit for a mortgage in London has risen by over 5% since September.
The Mortgage Advice Bureau said the average deposits in London are currently the highest in the UK, at £179,248.
In September 2015, the average deposit for a house in London was £170,328, meaning that deposits have seen a 5.2% increase in two months.
Help for first-time buyers in the capital is on the horizon however.
Chancellor George Osborne announced in his Autumn Statement that London will be given a dedicated Help to Buy scheme , offering buyers with a 5% deposit a loan of up to 40% of the value of a new build home, interest-free for five years.
Based on London’s average house price in October (£533,922), this means borrowers in the capital would pay a far more affordable £26,696 deposit.
Brian Murphy, head of lending at Mortgage Advice Bureau, told getwestlondon : “George Osborne’s Autumn Statement hammered home the government’s support for homeownership, with several policies aiming to improve both the supply and affordability of homes.
“This is sorely needed in the capital, where house prices remain much higher than in the rest of the country and saving up for a deposit can seem an impossible task.”
