The average deposit for first-time buyers (FTBs) has soared by over 50% throughout the last decade, data published by Stipendium has revealed.

Those trying to get on the property ladder must have a deposit of more than £45,500, compared to around £23,000 to £29,000 a decade ago.

“While this increase will have been felt by homebuyers at all levels of the market, it’s been particularly hard on first-time buyers who are just starting out on their journey to homeownership and who won’t have the financial backing of a previous property in order to cover their mortgage deposit costs,” Stipendium CEO Christina Melling said.

more2life corporate marketing director Stuart Wilson said “it will be more important than ever for older homeowners to have access to a range of tools to help their loved ones buy their first home”.

“One particular ‘multitool’ in the financial toolkit is equity release, which saw older homeowners release a record amount in 2021. The UK House Price Index shows that the average UK House Price Index shows that the average UK house price has risen by nearly 10% in the past year alone, meaning that the bank of mum and dad – or gran and grandad – has access to a growing pool of equity which they can gift to family to help them gather a deposit.

“With more2life research also showing a 116% year on year increase in the number of people using equity release for property purchases in 2021, it is clearly an option which is quickly growing in popularity.”

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