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Third of savers target house deposit

Cherry Reynard
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Cherry Reynard

One-in-three people who save a set amount of money each month are doing so to raise a deposit for a home.

Figures from the NS&I savings survey found of those people with a defined savings goal, 35 per cent were saving a deposit or putting money towards other housing related costs.

Almost half (49 per cent) of those aged between 25 and 34 plus 41 per cent of those aged 16-24 said they were saving to cover housing costs. Across all age groups the average person saved 8.52 per cent of their pay each month, this is the highest level seen for 10 years. This is equivalent to £113.77 per month. The savings market bottomed out in spring 2005 when the average Brit saved just 5.82 per cent of take home pay.

However, almost a third (29 per cent) said they did not have enough cash saved to deal with an financial emergency that could arise – such as losing their job. Julian Hynd, retail director at NS&I, said: “The latest results are encouraging, but we hope more people will be putting aside money into their rainy day savings, so they feel ready to deal with an emergency should one arise.”