A deposit of £17,000 has become the new benchmark target for many first-time buyers looking to secure a home, as fresh government schemes aim to lower the entry requirements for the UK property market.
The £17,000 figure represents a viable path for those using low-deposit mortgages or new government-backed equity loans. For prospective buyers in Bognor Regis, where the median property price stood at £325,000 in September 2026, a £17,000 deposit equates to approximately 5.2% of the purchase price.
The landscape for new buyers shifted on 26 September 2026, when Prime Minister Andy Burnham and Chancellor John Healey announced the “Your First Home” equity loan scheme. This initiative allows buyers to secure a new-build property with a deposit as low as 2.5%, supported by a 20% government-backed equity loan which features an initial interest-free period.
The Savings Path: ISAs and Bonuses
To reach the £17,000 target, many savers are continuing to use the Lifetime ISA (LISA), which offers a 25% government bonus on annual savings of up to £4,000. This provides a maximum yearly boost of £1,000. However, savers should note that LISA accounts must be open for at least 12 months before they can be used toward a property purchase.
The government is currently preparing to transition away from the LISA. A new “First Time Buyer ISA” is expected to replace the current product by April 2028. For now, the existing LISA rules remain the primary vehicle for those building a deposit.
Costs and Thresholds in Bognor Regis
For those looking specifically at the local market, the £325,000 median price in Bognor Regis means many properties sit just above the current Stamp Duty nil-rate threshold. As of the April 2025 landscape change, first-time buyers do not pay Stamp Duty on the first £300,000 of a property’s value.
Under the “Your First Home” scheme, a 2.5% deposit on a £325,000 new-build property would require £8,125. This makes the £17,000 national benchmark particularly relevant for local residents aiming to transition from renting to owning.
Detailed eligibility criteria and income caps for the new equity loan scheme in West Sussex are expected to be clarified in the upcoming budget. Full details on current support can be found via the official GOV.UK guidance for first-time buyers.
Prospective buyers are advised to factor in additional moving costs, including legal fees and surveys, which typically add several thousand pounds to the total upfront cost of a purchase beyond the deposit itself.
