Mortgages  

Average 20% deposit to double to £76,000, Labour claims

Average 20% deposit to double to £76,000, Labour claims

The average 20 per cent deposit will reach £76,000 by 2020 if house prices continue to rise, the Labour Party has warned.

In a report released ahead of the party’s conference in Brighton, Labour criticised the government’s record on housing, saying that by the time of the next election there would be 508,000 fewer homeowners than in 2010.

The nine-page report, called Five Years of Failure: The Tory Housing Record, was based on the trend since 2010 projected forwards to 2020.

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John Healey, shadow housing and planning minister, said: “The Tories’ five years of failure on housing means worry and misery for millions of people now struggling with the cost of the housing crisis – higher rents, more homelessness, the lowest rate of home ownership in a generation, and fewer homes built than at any time since the 1920s.

“There’s so much more ministers could be doing to ensure more people are decently housed and to help the next generation get on. Their inaction is indefensible. There can – and must – be change.”

Housing minister Brandon Lewis said: “Labour’s economic crash devastated the housebuilding industry, leading to the lowest levels of starts for any peacetime year since the 1920s.

“Just like the mess they made with the economy, the housing crisis they helped create will take time to fix.

“We are seeing encouraging signs with the number of first-time buyers at their highest annual level since 2007 and more than 606,000 new homes being built since 2010.”

Adviser quote

Sebastian Hurst, mortgage adviser with London-based Plutus Wealth, said: “Of course it is a concern if deposits double by 2020. It is an issue of housing supply.”