The average deposit for a UK home is now £33,000, according to Halifax. In London, high property prices and loan-to-value restrictions imposed on lenders mean buyers can be facing an eye-watering average deposit of £107,000.
However, the Help to Buy equity loan scheme allows buyers to purchase a new-build home costing up to £600,000 with just a five per cent deposit.
This is backed by a five-year loan from the government of 20 per cent (up to 40 per cent in London) of the property value.
So buyers using the scheme in certain parts of the country would need to save £6,700 as a downpayment on a home, according to Totally Money.
The finance website has also identified the best districts in the UK for people to buy using Help to Buy equity loans or ISAs, considering such factors as number of help to buy purchases per capita, average house prices, and average deposit size used.
Central Bedfordshire emerged as the top district in the UK with 1,710 equity loans per capita and 245 homes successfully bought using a help-to-buy ISA.