You are here: Home - Mortgages - Buy To Let - News -

Average first-time buyer faces a decade of saving

Written by:
First time buyers resign themselves to ten years of saving for a deposit on a home, according to the Post office.

Would-be buyers expect to be around 35 before they can buy their first home, compared to 50 years ago when the average first time buyer was 24 years old.

Prospective buyers living in the South East and South West have most difficulty with raising a deposit, with 65% and 56% respectively expecting it will take ten years or more to raise a deposit.

Meanwhile, 47% of Londoners say it will take them much longer to get the funds together.

John Willcock, head of Post Office Mortgages, said; “The average age of a first time buyer has been creeping up over the past 50 years and a perceived ten year wait to raise a deposit doesn’t help matters.

“The sheer size of the deposit is the most daunting thing for would-be first time buyers, but it appears to be worth the wait if it works out cheaper than renting.”

Would-be buyers north of the border are even more pessimistic of their chances of getting on the property ladder, as many Scots expect to buy their first property at age 40.

The survey highlights that the biggest barrier to entry for buyers is raising enough deposit for a place, unless their circumstances change, such as getting a better paying job or inheriting money.

The survey also highlights that renters on average pay £876 more a year that the average homeowner with mortgage payments.

Willcock says that first-time buyers might not have to wait as long as ten years to get their feet on the property ladder, as a number of competitive mortgage options hitting the market and mortgage rates at a historical low.

Almost a fifth of these would-be buyers also insist that a re-introduction of no stamp duty for first time buyers would help them get a foot on the property developer, with 29% wanting more assistance from the Government.

Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co... Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Tory MP: Pension restrictions must go

The government should “stand up for low-income savers” and lift the restrictions on the National Employment Savings Trust (NEST), a...