An average deposit stood at £12,700 at the start of 2007, but rose to £31,500 by the second half of 2010.
The CML was speaking at an emergency housing summit yesterday designed to provide the first step towards solving the first-time buyer funding crisis.
Click here to read more First-time buyers need £31k deposit
NetRent Comment
By any standards the rise in deposit required for First Time Buyers is staggering. The short term implications for the lettings industry is almost certain to be a increase in the numbers of people looking to rent.
Because landlords also face huge increases in the amount of deposit required on Buy-to-Let mortgages it is unlikely that enough landlords will be able to buy property to satisfy demand. This is likely to lead to a rise in rents making it even more difficult for First Time Buyers to save for a deposit to buy a house. This will mean that people will rent for longer, putting even more pressure on the private rented sector.
It will be interesting to see how the Government intends to break this cycle and the longer they take to resolve the problem the worse the situation will become.
