The cost of the average mortgage deposit has climbed £11,000 in some areas thanks to the stamp duty holiday fuelling the housing market.
That data comes from Keller Williams UK agency which has looked at the cost of buying a home based on the average mortgage deposit at 15 per cent of a property’s agreed price.
At £234,474, the current UK average house price requires homebuyers to stump up £38,461 for a 15 per cent mortgage deposit.
This is £3,249 more than the average 15 per cent deposit of £25,212 prior to the launch of the stamp duty holiday – that’s a nine per cent hike.
The South West is the region to have seen the largest monetary jump in the average cost of a deposit, up £4,196 since the start of the stamp duty holiday.
The South East has also seen an increase of more than £4,000, closely followed by the East of England (£3,498) and London (£3,180).
“The stamp duty holiday is now effectively over for all but those in the final stages of a transaction due to the long market delays that have accumulated at the back end of the process” explains Ben Taylor, chief executive of Keller Williams UK.
“This reduction in affordability has been felt right across the UK with southern regions seeing the largest monetary jump, while those in the north are facing the highest increase versus what they were paying previously.
“While the end of the stamp duty holiday will no doubt bring a natural correction to an otherwise overheating market, it’s unlikely to cause prices to crash and so the cost of buying looks set to remain a tough ask for those yet to climb the ladder.”
At local authority level, Hammersmith and Fulham has seen the largest jump with the average 15 per cent deposit climbing by £11,458 when compared to June of last year.
The initial cost of buying in Elmbridge (£11,223) and Haringey (£10,052) has also climbed by more than £10,000 as a result of the stamp duty holiday, with homebuyers in Rutland (£9,641) and Stratford-on-Avon (£9,236) also face steeper charges.