One of the key factors making it so important for people in the UK to get onto the property ladder is the fact that the monthly costs of buying are lower across the board than renting. First-time buyers in London alone were saving annually an average of nearly 2.2 thousand British pounds over those renting.
The problem for many is the overwhelming size of deposits and mortgages that have to be taken out. The average deposit needed by first-time buyers as of the first half of 2017 in Greater London came to a whopping 106.5 thousand British pounds and the average mortgage amounted to over 303 thousand British pounds.
In 2013 the UK government expanded existing initiatives into the 'Help to Buy' scheme which meant that potential home buyers could take a twenty percent equity loan from the government of up to 120 thousand British pounds to help them purchase a new build home. New home owners would not have to start repaying the loan for the first five years. The Help to Buy loan meant that first-time buyers would only potentially have to save a minimum of five percent of the deposit but would still need to have financed the rest of the home through a bank or building society. In March of 2017 the government paid out over 110 million British pounds in loans through the Help to Buy scheme. During the same month there were 609 mortgage completions through the same scheme.