The average deposits required to be paid by first-time house buyers is increasing dramatically in London as the demand continues to outstrip supply.
According to a latest research from mortgage advisor L&C Mortgages, the deposits required to be paid by first-time buyers in London now is £139,987, which is 33 per cent of the property value. This is set to rise to £188,966 (36 per cent of property value) in the next five years and reach £244,842 (40 per cent of property value) by 2027.
The deposits required to be paid by first-time buyers in 2007 was £52,543, accounting for 20 per cent of the property value. At present, majority of the young working professionals in London are saving sizeable proportion of their income as deposits to buy their first houses. A different study earlier this year by a leading bank showed how first-time buyers are increasingly depending on their parents to pay the deposits.
Not all housing schemes in London are targeted at first-time buyers. Strawberry Star, on the contrary, has housing schemes specifically targeted at first-time buyers in the Capital. The recently launched Greenview Court in west London is ideally located for first-time buyers considering the connectivity and the amenities in the neighbourhood.
This is the right time to acquire an apartment in Greenview Court considering the abolition of Stamp Duty by the government, aimed at helping first-time buyers.
Although the minimum deposit first-time buyers are required to put down can be as little as 5% of the property value, high house prices in many areas of the UK mean much larger deposits are often needed to ensure mortgage payments are affordable.