UK first‑time homebuyers need up to a decade of saving for deposits

Research shows a solo first‑time buyer in England must save for about nine years and five months to accumulate a 10% deposit and cover upfront costs of roughly £27,315 on an average £250,000 property. Saving 10% of take‑home pay each month yields this timeline, while buying with a partner can halve the period. Regional disparities are stark: in London a buyer would need around 13 years to raise the £47,692 required, whereas in the North East the time drops to about six and a half years for £16,763. The government plans to replace the Lifetime ISA with a new First‑Time Buyer ISA in 2028, retaining eligibility for those aged 18‑39 until then.

Separate analysis indicates that stamp duty remains a significant cost for first‑time buyers, especially in the South. In London, 80% of first‑time purchasers pay stamp duty, averaging £8,750 on a typical £475,000 home, with the average bill reaching £20,000 in the capital. Nationwide, 38% of first‑time buyers pay stamp duty, compared with just over 1% in the North East. The South East sees over half of buyers paying the duty, at an average of £11,250.