EXPERTS
How much deposit do you need? Q I am a first time buyer and I am hoping to buy a home very soon. But, how much deposit do first time buyers really need in 2026? Millie Watson, Southampton A The question I hear again and again from first time buyers is, “How much deposit do I actually need?” The honest answer is: usually less than you think; but the more you can save, the better your options. In 2026, most first time buyers will usually need at least a 5% deposit. So, if you’re buying a property for £250,000, that means saving £12,500. But while 5% may be the minimum, it isn’t always the A leasehold property works differently.You own the property for a fixed period, often 99, 125 or even 999 years, but the land itself is owned by a freeholder (or landlord). As a leaseholder, you’ll usually need to pay ground rent (except on a brand new property) and service charges, particularly if you’re buying a flat. Service charges cover the cost of maintaining shared areas, such as shared roofs, roads, hallways, lifts and gardens etc.There will also be rules set out in the lease that you must follow. Leasehold ownership is the most common tenure for flats. The Government has recently introduced land it stands on outright.There’s no time limit on your ownership and no landlord involved.You’re responsible for maintaining the property yourself, but you also have full control over it (subject to normal planning laws). For most houses, this is the most common and typically the simplest form of ownership. What does freehold, leasehold and commonhold mean? Q I’m looking to buy my first home and I keep seeing terms like freehold, leasehold and now commonhold. What do they actually mean, and which one is best? Jake Blackthorne, Basingstoke A This is a really common question, and it’s no surprise as the terminology can sound quite technical, but the basic idea is fairly straightforward once it’s broken down. At the simplest level, these terms describe how you legally own your home and what comes with that. If you buy a freehold property, you own the building and the
reforms aimed at making the system fairer and more transparent for homeowners. The third option, commonhold, is still quite rare but forms part of the Government’s longer-term plan to move away from leasehold ownership, particularly for flats. It allows you to own your property outright while sharing responsibility for the building with other residents, removing the need for a landlord and any ongoing ground rent. Legislation to make this the default tenure for flats is currently progressing through Parliament. Generally freehold is the “best” tenure, but in practice, it comes down to the type of property you’re buying: • For houses, the tenure is usually freehold • For flats, leasehold remains the most common tenure, although commonhold may become more widespread over time. Importantly, your conveyancer will explain exactly how your property is owned and any costs or restrictions, so you can make an informed decision.
Adam Crawford
rents and everyday costs remain so high, but it can open up better deals than a 5% deposit. It is also important to remember that averages can be misleading. Halifax figures cited by HomeOwners Alliance show the average first time buyer deposit in 2024 was £61,090, with London buyers putting down an average of £124,688. But that does not mean every buyer needs that amount.What you need depends on where you are buying, the property price, your income, outgoings and the mortgage products available. So, can you buy with no deposit? In some cases, yes. There are 100% mortgages, but they are not for everyone. Skipton Building Society’s Track Record Mortgage is aimed at renters who can show a strong history of paying rent and household bills. Family support can also make a no-deposit purchase possible, by using a family springboard or guarantor-style mortgage.
But buyers need to go in with their eyes open. No-deposit mortgages can mean higher monthly repayments, tougher affordability checks and a greater risk of negative equity if house prices fall. My advice? Don’t assume you need 20% before you can start. Speak to a broker, check what you can borrow, and budget for the full cost of buying. The deposit is only one part of the puzzle.
ideal. A bigger deposit normally gives you access to more mortgage deals and better interest rates. Put simply, the less you need to borrow, the less risky you look to lenders. That can mean lower
monthly repayments and a better chance of passing affordability checks. A 10% deposit is a good target if it is achievable. It won’t be possible for everyone, especially while
For independent, consumer-focused guidance on mortgages and buying your first home, visit hoa.org.uk.
Paula Higgins
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