UK property buyers are having to save up to £11,500 more for a deposit on their house, according to Mortgage Advice Bureau.

What’s happening? If you’re hoping to buy a house in the UK in the next couple of years, you might need to save more money than you originally thought for your deposit. Research now suggests that buyers think they’ll need an average deposit of £36,118. But due to economic changes, a majority (62%) think they might need even £11,500 more than that. That’s quite a bump!

Why is this happening? The economy is like a see-saw. When one side goes up, the other can go down. Here, a few things have happened:

1. Economic Challenges: The economy has been a bit shaky, and this has affected house prices and how much people can save.
2. Borrowing Costs: For some (25%), borrowing money has become more expensive. Imagine if your favourite candy costs more than before. Now you need more pocket money, right? It’s the same with borrowing money for houses.
3. Loan Preferences: Some people (11%) want to borrow less and put down a bigger deposit. This is called a lower loan-to-value (LTV). It’s like buying a car and deciding to pay more upfront instead of owing money later.
4. Help from Family: Because of these challenges, almost 1 out of 10 people are now asking their parents (lovingly called the ‘bank of mum and dad’) for some help with their deposit.

What are the effects? Due to these challenges:

• 15% of those wanting to buy have decided to wait for a while.
• Saving enough for a deposit has become a big hurdle for nearly 1 out of 3 people.

Is there any good news? Yes, there is! Ben Thompson from the Mortgage Advice Bureau says that even though things seem tough, there are still some bright spots:

1. Higher Interest on Savings: Because of high interest rates, if you’re saving money, you can earn more from it! Think of it as getting extra pocket money for saving wisely.
2. Government Help: There are special savings accounts like the Lifetime ISA and Help to Buy ISA (if you had one before it stopped) that can give you a boost when saving for a house.