Saving a house deposit is the biggest financial challenge facing UK first-time buyers. Use this calculator to find out how much deposit you need, how long it will take to save it, and how much interest you will earn along the way. Factor in LISA bonuses, current savings rates and your chosen deposit percentage.
| Property Price | 5% Deposit | 10% Deposit | 20% Deposit | Months to Save (£/mo) |
|---|
House prices vary dramatically across the UK. The national average is approximately £285,000, but where you plan to buy significantly affects your deposit target and savings timeline.
| Region | Average Price | 5% Deposit | 10% Deposit | 20% Deposit |
|---|---|---|---|---|
| London | £540,000 | £27,000 | £54,000 | £108,000 |
| South East | £395,000 | £19,750 | £39,500 | £79,000 |
| South West | £320,000 | £16,000 | £32,000 | £64,000 |
| East of England | £355,000 | £17,750 | £35,500 | £71,000 |
| East Midlands | £245,000 | £12,250 | £24,500 | £49,000 |
| West Midlands | £255,000 | £12,750 | £25,500 | £51,000 |
| Yorkshire & Humber | £215,000 | £10,750 | £21,500 | £43,000 |
| North West | £220,000 | £11,000 | £22,000 | £44,000 |
| North East | £145,000 | £7,250 | £14,500 | £29,000 |
| Scotland | £195,000 | £9,750 | £19,500 | £39,000 |
| Wales | £210,000 | £10,500 | £21,000 | £42,000 |
| Northern Ireland | £185,000 | £9,250 | £18,500 | £37,000 |
Save up to £4,000 per year. Government adds a 25% bonus (up to £1,000/year). Must be 18–39 to open. Use towards a first home worth up to £450,000. Open for at least 12 months before purchasing.
Buy between 10% and 75% of a property and pay subsidised rent on the rest. Deposit is based only on your purchased share, dramatically reducing the amount needed upfront.
Qualifying first-time buyers and key workers can buy new-build homes at a 30–50% discount from the open market value. Available through selected developers in England. Discounts apply to future sales too.
For Universal Credit or Working Tax Credit recipients. Save £1–£50/month and receive a 50% government bonus at end of year 2 and year 4 (max £1,200 bonus). Can boost deposit savings for lower-income buyers.
If you are aged 18–39 and have not yet opened a LISA, do it today even with just £1. The 12-month holding period begins from the date you open it, not when you deposit significant funds. Over 4 years of maximum contributions you could receive £4,000 in free government bonuses.
Set up a standing order to transfer money to your savings account on payday, before you have a chance to spend it. Behavioural economics shows that automated savings consistently outperform manual transfers by 30–40%.
In 2026 the best easy-access savings accounts and cash ISAs offer around 4.5–5.5% AER. Do not leave deposit savings in a current account earning near-zero interest. Moving £20,000 from 0.1% to 5% earns an extra £980 per year in interest.
If property prices in your target area are rising faster than you can save, you may need to adjust your strategy. Consider a lower deposit percentage, a cheaper area, or exploring Shared Ownership where the required deposit is smaller.
A detailed budget review typically reveals £200–£500 per month in savings potential through switching energy tariffs, insurance policies, phone plans and subscription services. Even an extra £150 per month can shave a year or more off your timeline.
The size of your deposit directly determines your loan-to-value (LTV) ratio, which in turn significantly affects the mortgage interest rate you can access. Here is a typical rate comparison in 2026:
| Deposit Size | LTV | Typical Rate | Monthly Payment (£285k property) |
|---|---|---|---|
| 5% | 95% | 5.5–6.5% | ~£1,820/mo (25yr term) |
| 10% | 90% | 4.8–5.5% | ~£1,670/mo |
| 15% | 85% | 4.5–5.0% | ~£1,590/mo |
| 20% | 80% | 4.0–4.6% | ~£1,510/mo |
| 25%+ | 75% | 3.8–4.3% | ~£1,450/mo |
Your deposit is not the only upfront cost when buying your first home. Budget for these additional expenses:
For a typical first-time purchase at £285,000, total additional costs above the deposit are usually £4,000–£8,000. Make sure you save for these on top of your deposit target.
Most UK mortgage lenders require at least a 5% deposit, though a 10% deposit gives you access to significantly better mortgage rates. On the UK average property price of £285,000, a 5% deposit is £14,250 and a 10% deposit is £28,500. First-time buyers should also consider government schemes that can help reduce the deposit required.
A Lifetime ISA (LISA) lets you save up to £4,000 per year and receive a 25% government bonus of up to £1,000 free per year. You must be aged 18 to 39 to open one. The bonus can be used towards buying your first home costing up to £450,000. You must have held the LISA for at least 12 months before using it for a house purchase.
From April 2025, first-time buyers pay no stamp duty on the first £300,000 of a property priced up to £500,000. For properties costing £300,001 to £500,000 the rate is 5% on the portion above £300,000. Properties above £500,000 do not qualify for first-time buyer relief and standard SDLT rates apply.
Shared Ownership lets you buy between 10% and 75% of a property and pay subsidised rent on the remaining share owned by a housing association. Because you are buying only a share, the deposit required is calculated on just that share. You can purchase additional shares over time (staircasing) until you own 100%. It is available in England through housing associations and some developers.
The UK average house price in 2026 is approximately £285,000 according to the ONS House Price Index. Prices vary enormously by region from around £145,000 in the North East to over £540,000 in London. Scotland averages around £195,000 and Wales around £210,000. Use our regional table above to find the typical price for your target area.
At the UK average house price of £285,000, saving a 10% deposit of £28,500 while saving £500 per month at 5% interest takes approximately 4 years and 4 months from zero savings. Starting with £5,000 reduces this to around 3 years and 7 months. Using a LISA and other high-interest accounts can speed this up further. Use our calculator above for a personalised estimate.
Help to Save is a government savings scheme for people on Universal Credit or Working Tax Credit. You can save between £1 and £50 per month and receive a 50% bonus after 2 years and another after 4 years, up to a total bonus of £1,200. While aimed at those on low incomes, it can help first-time buyers in this situation build a deposit faster than standard savings accounts.