The average deposit for a home has passed £80,000 for the first time, new industry figures have revealed.
According to the National Mortgage Index from the Mortgage Advice Bureau, the average deposit for a property rose by 15.0% annually to reach £81,721 in December.
This is the greatest year-on-year increase in average deposits since the index began in 2009 and reflects increasing property prices, the MAB said.
The MAB said that December was the third consecutive month of worsening affordability as salaries fell while purchase prices increase.
The average salary of homebuyers fell 2.9% from £39,983 in December 2014 to £38,820 last month, compared to a rise in the average purchase price for a property in December of 9.3% to £252,990 over the same period.
Brian Murphy, head of lending at Mortgage Advice Bureau, said: “Demand in the housing market is yet to come off the boil, despite the current dearth in property supply. As a result house prices are likely to continue rising this year, bringing about affordability concerns which will particularly affect first-time buyers. A significant boost to the construction of new homes is needed to prevent some buyers being priced out of the property market.
“The fall in average salaries over the past year suggests those with slightly lower incomes are still able to access the housing market, despite the significant rise in house prices. This has been helped by rock bottom mortgage rates, which have fallen steadily over the past year. However, these low rates won’t last forever, and if prices continue to rise faster than wages those with lower incomes may find it more of a challenge to become homeowners.
“Government initiatives such as more affordable housing and the Help to Buy schemes go some way in helping those who are finding it difficult to fund a house purchase. However, income and house price growth needs to be more aligned to make homeownership a more realistic dream.”
