AVERAGE deposits paid for homes in the UK increased year on year by an average of £5,000 in the first six months of 2016.

This was despite deposits as a percentage of the purchase price falling by one per cent on average in England and Wales.

Research by the conveyancing service My Home Move compared deposit sizes in the first six months of 2015 and 2016.

The firm’s CEO Doug Crawford said the results showed the effects of measures to ensure easier lending by banks: “The decrease in deposit percentages indicates that the measures introduced by the government to ensure easier lending across the mortgage market have had a positive impact, especially for those outside the capital.”

However, he added that rising house prices mean many buyers are not actually better off as a result of deposit decreases.

“While this may sound like great news for home buyers, the reality is somewhat different,” Mr Crawford said.

“The rise in overall property prices means that, in real terms, this decrease actually translates into increase in the majority of regions.

“For those looking to buy in Wales the increase, on average, is only a few hundred pounds, but for those in London or the South East this translates into thousands of pounds.

“For many, their deposit will come from the equity in the property they are selling.”

He went on to say that many house buyers could be struggling to save enough to pay for their mortgage deposit: “There are still a large proportion of home buyers who will need to save thousands of pounds more, to make the move onto and up the property ladder,” he added.