How much deposit do you need to buy a house in 2026?

How much do you need for a house deposit?

Most lenders want a deposit of at least 5% of the price of the home. So for a £250,000 house, the minimum deposit on a house would usually be £12,500. Here's how that scales at different prices.

That's the floor, though, not the norm. In practice, most buyers put down a lot more, partly because a bigger deposit gets you a cheaper mortgage and partly because, in many parts of the country, 5% alone won't get you a loan big enough to buy. How much deposit for a house you actually need depends on where you're buying, what you're buying and whether you've owned a home before.

How deposit size affects your mortgage

Lenders price mortgages in bands based on loan to value (LTV), which is simply the size of your loan as a percentage of the property's price. A 10% deposit means a 90% LTV mortgage.

The bigger your deposit, the lower your LTV, and the lower the interest rate you'll usually be offered. The biggest jumps tend to come at the 10%, 15%, 25% and 40% deposit marks, so if you're close to one of those, it can be worth saving a bit longer to get over the line.

Average house deposit in the UK

The most reliable regional figures come from Halifax's annual First-Time Buyer Review. Its latest published review found the average first-time buyer put down a deposit of £61,090 in 2024, which worked out at around 20% of the purchase price.

That average hides a huge range. First-time buyers in London put down well over £120,000 on average, while in the North East the figure was closer to £30,000.

Source: Halifax First-Time Buyer Review, 2024 figures.

Bear in mind these are averages, not requirements. A few buyers with very large deposits pull the figures up, and plenty of people buy with a lot less.

How much deposit for a house in London?

London is in a league of its own. According to Halifax, the average first-time buyer deposit in the capital was £124,688, roughly twice the UK average and around 24% of the purchase price.

That's partly because prices are so high, and partly because lenders cap how much you can borrow as a multiple of your income. With London prices where they are, many buyers simply can't borrow enough to buy with a small deposit, so they need a bigger one to make up the gap. Shared ownership is one route some London buyers use to get started with a smaller deposit.

How much deposit for a first-time buyer?

Technically, first-time buyers can still buy with 5%, and some lenders now go lower. In May 2026, Lloyds Banking Group launched a mortgage for first-time buyers that needs just a £5,000 deposit on homes up to £300,000, although it comes with a higher interest rate and strict criteria.

On average, though, first-time buyers put down around 20%, often with help. Many combine savings with a Lifetime ISA, which adds a 25% government bonus on up to £4,000 a year, or a gift from family. Our guides to the Lifetime ISA for first-time buyers and gifted deposits explain how each one works.

First-time buyers also get extra help with stamp duty in England and Northern Ireland, paying nothing on the first £300,000 of a home costing up to £500,000. That's money you won't need to find on top of the deposit.

If you're starting from scratch, our first-time buyer guide covers the whole process.

How much deposit do next steppers need?

If you already own a home, the rules on deposits are the same, but your position is usually very different. Most next steppers fund their deposit from the equity in their current home, which is the difference between what it sells for and what's left on the mortgage.

That's why home movers typically put down bigger deposits than first-time buyers. Even so, deposits have been getting tighter. Barclays' mortgage data for the year to June 2026 showed the average deposit for home movers fell by almost a quarter year on year, and the share of movers borrowing more than 75% of the property's value rose from 18.2% to 22.1%.

The step up the ladder is also getting bigger. Rightmove's figures from March 2026 put the average asking price for a typical three- or four-bedroom home at £345,857, compared with £226,955 for a typical first-time buyer home of up to two bedrooms. A 20% deposit on the bigger home works out at £69,171, around £23,800 more than on the smaller one.

If your equity doesn't stretch far enough, there are options, such as releasing equity from your current home. Our guide to remortgaging to release a deposit explains how that works.

Don't forget the other costs

The deposit is the biggest cost of buying, but it isn't the only one. You'll also need money for stamp duty (unless you're exempt), conveyancing fees, a survey, mortgage fees and moving costs. MoneyHelper's guide to buying and moving costs lists them all, and it's worth budgeting for them separately from the deposit so you're not caught short at the last minute.

One common mistake is to put every penny into the deposit and leave nothing for the rest. It's usually better to keep a buffer, even if it means a slightly smaller deposit.

Can you buy with a 5% deposit?

Yes, and plenty of people do. Mortgages at 95% LTV are widely available, and our guide to 95% mortgages and the government's mortgage guarantee scheme explains how they work and who they suit.

Just go in knowing the trade-offs. You'll usually pay a higher interest rate, you'll have less of a cushion if house prices fall, and you may find it harder to borrow enough in more expensive areas.

Getting started

The best first step is to work out roughly how much you can borrow and how much you'll need on top. A mortgage agreement in principle gives you a clear idea, and it's quick to get. From there, you can set a savings target and a realistic timeline for buying.