2016 saw most first-time house buyers since 2007, says Halifax

London prices eye-watering
London prices eye-watering

More first-time buyers climbed on to the property ladder in 2016 than in any year since 2007, but would-be home owners now need to raise more than £32,000 for a deposit, research suggests.

Those buying their first property can expect to pay more than £200,000 across the UK generally and an “eye-watering” £400,000 in London, according to Halifax.

Northern Ireland was the cheapest with a starter home costing £115,269 on average.

Deposit sizes have more than doubled over the last decade. In 2006, the average UK deposit was £15,168 but is now £32,321, around 16% of the price of a typical first home.

In London, a first time deposit is more than £100,000 on average, leaving buyers still worrying about cover moving costs, legal fees and stamp duty.

In 2016, the average house price paid by first-time buyers was £205,170 - the highest on record. This average has grown by 7% over the last year, pushing it over the £200,000 mark.

In London, first-time buyers can expect to pay £402,692.

The number of first-time buyers is estimated to have reached 335,750 in 2016, Halifax said.

This is the highest figure since 359,900 in 2007, and marks the third year in a row that the number has topped 300,000.