People who are looking to buy a new home in the next two years are aiming to save over £11,500 more for a deposit, the Mortgage Advice Bureau (MAB) has found.

In new research, the MAB has found that whilst the challenge of saving for a deposit isn’t a new one, the size of deposits required is increasing as a result of economic factors limiting how much people can borrow.

On average, buyers have said they would need to save £36,118 for their deposit. However, over three in five (62%) said that this has increased, with future homeowners expecting to need an additional £11,500 in light of recent economic uncertainty.

The research found that as a result of this increase, 15% of prospective buyers have delayed their plans to buy a home altogether, with 32% saying that saving for a deposit is the biggest barrier for homeownership.

Furthermore, a quarter (25%) of those surveyed said the higher cost of borrowing means they will have to save more, with one in 10 (11%) saying that the amount they need to save has increased due to them wanting a lower loan-to-value (LTV).

Almost one in 10 (8%) said that they will now turn to the ‘bank of mum and dad’ for help.

As a result of increasing costs, nearly a quarter (24%) of prospective buyers said they are cutting back in socialising in order to save for a deposit, with 26% stating that they have cut back on luxuries.

Deputy chief executive officer at MAB, Ben Thompson, said: “There are many challenges for prospective buyers to overcome before they get the keys in their hands, and right now, they’re coming from all sides.

“Economic volatility has seen prospective buyers battle high inflation, pushing prices up and limiting the amount they can save. Meanwhile, higher interest rates have lowered the amount they can borrow, meaning bigger deposits are needed. This has led to many prospective buyers having to put more away than they had initially planned.

“Nevertheless, there are some positives that can be taken from this. For those saving for a mortgage, it’s time to take advantage of higher interest rates on savings, with fixed rate accounts in particular offering good rates. Government initiatives, like the Lifetime ISA and Help to Buy ISA, for those who had an account before the scheme closed, can also help. Whatever stage you are at, it’s worth talking to a broker who can help you get mortgage ready.”

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