The average house buyer is putting down a record deposit of more than £72,000, according to an index.
It is the highest level since the Mortgage Advice Bureau (MAB), a broker, began collating the figures in March 2009.
The previous peak was £71,474 in June last year. Last month, the figure rose to £72,302.
Rising house prices mean that not only do buyers need to find bigger deposits, but the increased equity also helps those already on the property ladder to put down larger amounts on their next home. The average deposit as a proportion of a loan rose from 28pc to 30pc.
Earlier this week figures from Halifax showed house prices in the UK had risen by more than £100 a day in April, taking the average value across Britain to £196,412.
MAB’s index – compiled using data from over 600 brokers and 900 estate agents – indicated that average mortgage sizes, as well as deposits, reached new levels in May with the typical homebuyer applying for a mortgage of £167,842 last month: 1pc higher than April’s previous post-recession peak of £166,141.
The research also found that borrowers are putting up more of their own funds in order to climb the property ladder. A 4pc growth in the average deposit since May 2014 (equivalent to an extra £3,064 of cash or equity) has matched the 4pc growth in the average loan (equivalent to an extra £5,944 of borrowing).
Average deposits have grown at the same pace as average loans over the last year
|May 2014||May 2015||Actual change||% change|
New affordability measures introduced over the last year are also helping to ensure lending activity remains in check, the MAB said.
Brian Murphy, head of lending at Mortgage Advice Bureau, said: “Putting up a 30pc deposit helps to unlock some of the best rates on the market and helps keep mortgage payments even more affordable.
The rise of deposits is less encouraging for first time buyers, but there is at least some hope that more low cost properties will become available as second and third-steppers make their move up the ladder.”