Misconceptions around deposit requirements could be delaying homeownership for many

First-time buyers could be putting their homeownership plans on hold unnecessarily, after research suggests many are saving for a deposit far larger than they actually need.

Analysis of HM Land Registry’s latest UK House Price Index by online estate agent emoov reveals the average UK house price stood at £267,957 in February 2026.

A 20% deposit on a home at that price would total £53,591, yet buyers can access mortgage products with as little as 5%, requiring just £13,398. That is a difference of more than £40,000.

The 20% myth

Despite the wide range of lower-deposit mortgage products available, many first-time buyers continue to believe a 20% deposit is the minimum required to secure a mortgage.

Nick Neale, property expert at emoov, said: “Too many first-time buyers still believe they need a 20% deposit to buy a home, which on the average UK property means saving more than £53,000 upfront.

“It is no surprise that many feel priced out before they have properly explored their options.”

The warning comes as the housing market settles into a more measured pace.

Rightmove recently reported that homes took an average of 62 days to secure a buyer across Great Britain in April 2026, giving buyers more time to explore their options rather than ruling themselves out too early.

Neale added: “A bigger deposit can certainly help secure better rates, but buyers should not confuse that with the idea that 20% is always the minimum required.

“The smartest move is to get advice early, understand the deposit options available, and budget for the wider costs of buying a home, not just the deposit.