Where you can you buy your first home with a deposit of £5k to £15k?

publication date: Aug 28, 2014
 | 
author/source: Kate Faulkner, Property Expert and Author of Which? Property Books
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Where you can you buy your first home with a deposit of £5k to £15k?

Depending on where you live, you may think it’s possible, or impossible to afford your first home. The biggest hurdle most first time buyers say they have is saving for a deposit.

And it’s not a surprise many don’t even bother, there are so many headlines saying ‘first time buyers need £31,000 deposit’ or I’ve even seen as high as £60,000. There was even a ridiculous report suggesting someone born today would have to pay over £3 million for their first home!

The problem is the information we often see in the media is ‘spun’ to make big headlines. For example, the average first time buyer, according to the Council of Mortgage Lenders:-

First time buyer stats for London (Aug 2014):-

  1. Average first time buyer borrows 3.9x their gross income
  2. Typical loan size is £212,000
  3. 63% of FTBs bought properties at £250,000 or more
The stats tell us “first time buyers in London” typically put down a 25% deposit. What the papers do with this is then turn this statistic into a ‘catchy title’ to say “this is how much you have to put down” – clearly the two are very different. 

Everywhere else, the First time buyer stats (Aug 2014) are:-
  1. Average first time buyer borrows 3.47x their gross income
  2. Typical loan size is £124,000
  3. First time buyer gross household income tended to be £37,000
On average, outside of London, buyers tend to put down a 20% deposit – but this doesn’t mean you have to! 5% is enough.

What can you find for these amounts or less around the UK? 
I’m not recommending the properties below as you need to check themselves out for yourself, but what they show is it is possible to buy a property in the UK for £20,000 via shared ownership and even for less than £200,000 in London.


That means if you can save up to £10,000, you can even buy in London with a 5% deposit, provided you can support the mortgage.

Need help saving £10,000? Download my “saving for a deposit” calculator

London 
Check out a one bed flat for under £175,000 near Bounds Green tube. Or you can buy the flat under shared ownership, so  a 25% share for £42,500.


Bristol 
Take a look at this two bedroom terrace for £165,000 in Bedminster


Brighton 
See what this two bed shared ownership flat could do for you, £112,000, giving you a 35% share


Peterborough 
If you want to be 45 minutes from Kings Cross, try this new two bed flat, within walking distance of the newly renovated train station, it’s up for £100,000. It includes a £1,000 buyer’s incentive! 


Birmingham 
Two bed house for sale under shared ownership, for just over £60,000, in Selly Oak, in return for a 35% share


Nottingham
You can take your pick of lots of different properties here! Here’s an example of one near the city centre and easy access to the countryside, three bed house for £75,000.


Or a one bed flat for just £20,000 via shared ownership

Cardiff
A one bed flat for under £75,000 


Manchester (Salford)
A one bed flat for sale for £80,000 near Media City


York
A one bed property within walking distance of York station for just over £100,000


Edinburgh 
A three bedroom end of terrace house which you can buy under shared ownership for 80% @£132,000 or 60% @ £99,000 based on a full market value of £153,000, albeit a little outside of the city itself. 


Make sure you do your research thoroughly if you are thinking about buying a flat.

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All our information is brought to you by Kate Faulkner, author of
Which? Property books and one of the UK's top property experts.
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