Almost two fifths of prospective first time buyers who are currently saving for a deposit intend to increase their contributions this year, research from Abbey savings has revealed.

According to the study, house prices are looking increasingly affordable, which is inspiring 38 per cent of first time buyers already saving to increase their contributions, while 40 per cent of those with no savings are going to start this year.

Those beginning to save said they will put away an average of £123 each month, while those already saving will increase the monthly amount by an average of £203.

When asked how much they thought they should save for a mortgage deposit, the average was £20,000.

Director of savings and investments at Abbey, Reza Attar-Zedah commented: “Homeownership is beginning to look like a much more realistic goal for thousands of first time buyers who have clearly been keeping an eye on house prices.

“Building a deposit is no small task, but those who have chosen to start putting extra money away are clearly better prepared to make an offer on a property when they see their opportunity. Savers need to be aware that a large deposit will make it easier for them to be accepted for the best mortgage deal.”

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