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The best and worst UK cities to save for a house deposit

The best and worst UK cities to save for a house deposit
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Moving to a different city could bring you a step closer to purchasing your dream house. This is according to a new study by CIA Landlord that looks at the best and worst UK cities to save for a house deposit.

The company compared average house prices, average deposits, monthly salaries and spending, and average monthly savings to establish how long it would take to save up for a deposit. Here’s a brief breakdown of the study’s findings.

Common home ownership barriers

First-time buyers and those looking to get back on the property ladder have traditionally faced many barriers when trying to buy a home. These include high deposit requirements for a mortgage and restrictive lending criteria.

The coronavirus pandemic has not made things any easier, with many buyers finding it hard to save enough money for a deposit. But the results of the study by CIA Landlord show that one unlikely solution might be to move to a different city.

The best cities to save for a house deposit

City Average deposit needed Time to save for deposit (months)
Huddersfield £25,893.60 16.96
Coventry £31,233.45 19.64
Aberdeen £32,290.65 19.94
Hull £20,515.05 20.29
Manchester £30,435.75 20.67
Glasgow £28,955.30 21.20
West Bromwich £23,083.50 21.95
Wolverhampton £31,870.20 22.27
Swansea £27,762.30 23.04
Dundee £26,859.90 23.46

 

Huddersfield comes out as the best UK city to save for a deposit. The low cost of living and high monthly saving capabilities mean that it could take as little as 17 months to afford a deposit of £25,893.

Coventry comes in second. Although the average house deposit needed is quite high (£31,233.45), high average monthly salaries, reasonable average monthly living costs and high monthly saving capabilities mean that it could take just under 20 months to save for a deposit.

In Aberdeen, which is the third best city to save for a deposit, a high deposit requirement (£32,290.65) is offset by relatively high monthly savings capabilities. This translates to a little under 20 months of saving to afford a deposit. 

The worst cities to save for a house deposit

City Average deposit needed Time to save for deposit (months)
Cambridge £66,411.60 52.20
Croydon £54,084.15 50.84
London £100,026.30 50.51
Peterborough £31,870.20 48.28
York £45,488.40 45.62
Brighton £57,650.70 45.51
Crawley £50,638.20 42.46
Milton Keynes £44,682.45 40.38
Worcester £40,830.90 39.30
Watford £65,256.90 38.91

 

Cambridge ranks as the worst UK city to save for a deposit. Buyers here need an average of £66,411.60, and by CIA Landlord’s calculations, this could take more than four years to save.

Croydon, which is second on the list, is characterised not only by high deposit requirements (£54,084.15) but also by relatively low monthly savings capabilities. This means that it will take just over four years to save for a deposit.

Not surprisingly, London ranks among the worst cities to save for a deposit.

Although the city has one of the highest average monthly salaries and monthly savings capabilities, the high average deposit requirement (£100,026.30) means that it will take buyers close to four years to save enough for a deposit.

Should you move to a different city just to afford a house deposit?

The biggest benefit of moving to a different city to buy a house is that it could take significantly less time to move into your own house.

Even with the assistance of a government scheme like Help to Buy, there are some places where it might still take you years of planning and saving before you have enough for a house deposit.

Before you take the plunge and relocate for a more affordable house deposit, it’s a good idea to consider other personal factors that are equally important. For example:

  • What would the move mean for your career prospects? 
  • How far would you be from family?
  • What’s the crime rate in the new area like?
  • Does the area have the amenities you need? (good schools, entertainment, sports and leisure facilities)
  • Is there access to good public transport?

Asking yourself these questions, as well as doing your homework, can you give a pretty good idea of whether moving to a particular city to afford a house deposit is the right course of action for you.

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