Average house purchase deposit leaps 15%

london-touch-to-sell-propertyThe average house purchase deposit jumped 15% in a year which is way more than £80,000 in December, making it as highest point since 2009. The average LTV has fallen to its lowest level since June 2010 as borrowers put down higher deposits. Affordability has got bad as house prices rises 9.3% annually while salaries fall 2.9%, a latest report from Mortgage Advice Bureau says. The average purchase price for a property in December rose to £252,990, which was up from £231,487 from past year.

Brian Murphy, head of lending at Mortgage Advice Bureau, says: “The housing market yet to come off despite the current shortage in property supply. An expected impact of rising house prices is that higher deposits are required. Those who cannot afford are finding their choices of properties limited. As a result house prices are likely to continue rising this year, bringing about affordability concerns that will particularly affect first-time buyers.”

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