How Much Deposit Do I Need to Buy a House in Birmingham in 2025?

Thinking of buying a house in Birmingham this year? Whether you're a first-time buyer or moving up the ladder, one of the biggest questions you’ll probably ask is - how much deposit do I need to actually get started? Let’s break it down.

So, how much deposit do I need?

Most buyers will need at least 5% of the property price as a deposit. But the more you can save, the more mortgage options you'll have - and often, lower monthly payments too.

Let’s say you're looking at a home for £250,000 in Birmingham:

A 5% deposit = £12,500
A 10% deposit = £25,000
A 15% deposit = £37,500

If you’ve got a bigger deposit, lenders see you as less of a risk - meaning you could get access to better interest rates.

Can I buy with just 5%?

Yes - 95% mortgages are still around in 2025, especially for first-time buyers. Some lenders will even offer them to home movers, too.

This is ideal if you’re looking at popular areas like Selly Oak - great for younger buyers - or Northfield, where you can still find decent space for your money. Whether you’re after a one-bed flat, a terrace with character, or something modern, a 5% deposit is a solid place to start.

What’s the average house price in Birmingham in 2025?

The average price is hovering around £260,000, but this depends on location and property type. Homes in Harborne, for example, tend to be higher - it’s a sought-after spot with a village feel and great local schools.

Meanwhile, areas like Shirley and Bromsgrove are becoming increasingly popular for families and commuters. You can still find homes under the £300,000 mark in these areas, which means a 10% deposit could be around £25,000–£30,000 depending on the property.

What about gifted deposits?

Using a gifted deposit from a parent or family member is totally acceptable - and very common in today’s market. Just make sure it’s a true gift (not a loan), and the lender knows where the money’s come from.

It can make a big difference, especially if you’re struggling to hit that 10% mark on your own.

Are there any help-to-buy schemes in 2025?

Yes - and they’re definitely worth checking out:

Lifetime ISA - Save up to £4,000 per year and get a 25% government bonus
Shared Ownership - Buy a share of a home and rent the rest - ideal if you’ve only got a small deposit
First Homes Scheme - Discounted homes for first-time buyers and key workers

These schemes can help you buy sooner - even if you're not quite at your dream deposit yet.

What else do I need to budget for?

Your deposit isn’t the only cost - keep these in mind too:

Solicitor fees
Mortgage broker fees (optional but often helpful)
Valuation/survey fees
Stamp Duty (depending on your price bracket)

It’s worth having a little buffer on top of your deposit to cover these extra costs comfortably.

Is Birmingham a good place to buy right now?

Absolutely - and not just because we’re biased! Birmingham is buzzing with development and investment. HS2, the Commonwealth Games legacy, and big regeneration plans are all adding to the city’s long-term growth.

From leafy Harborne to lively Selly Oak, and from central hotspots to family-friendly areas like Shirley, Northfield and Bromsgrove, there’s something for every kind of buyer.

Final thoughts

To wrap it up:

5% is the minimum deposit - but 10–15% gives you more mortgage options
Birmingham still offers great value for buyers in 2025
Don’t forget about help-to-buy schemes and gifted deposits
Every area is different - so choose a location that suits your lifestyle and budget

Ready to start your journey?

Whether you're buying in Selly Oak, Harborne, Shirley, Northfield, Bromsgrove, or anywhere in between - our team at Oakmans is here to help you every step of the way.

See our mortgage page for more information about the services we offer, or click here to book an appointment with one of our in-house mortgage experts.

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