First-time buyers use “drastic” measures to get on the property ladder
One in five (22%) of first-time buyers who saved each month to build up their deposit moved back in with or continued to live with their parents, according to Which? mortgage advisers.
Nearly four in 10 (37%) saving up for their first home worked overtime while 19% went as far as selling personal belongings to help raise the funds.
It comes as statistics from the Institute for Fiscal Studies last week revealed that homeownership among young people has fallen significantly in the past two decades.
While the campaign group revealed that 62% of first-time buyers set aside money every month in order to afford their own home, they are having to rely on money from elsewhere to get a foothold on the property ladder.
The ‘bank of mum and dad’ is estimated to have lent approximately £6.5bn in 2017 and around a third (31%) of first-timers used money they had inherited.
Three in ten (29%) received a contribution from a friend, family member or elsewhere.
In terms of deposit amount, almost half (46%) of first-time buyers had a maximum deposit of 10%, but with property prices continuing to rise throughout the country, even this amount is out of reach for many, Which? said.
The average property price in the UK is £234,794, which means to have a deposit of just 10% requires savings of over £23,000, without factoring in the additional costs of buying a property.
David Blake, principal mortgage adviser at Which?, said: “For many, the prospect of saving a deposit for a first home can be daunting, unrealistic and even downright depressing.
“However, there are various options out there for first-time buyers, from Help to Buy ISAs to equity loans, and even shared ownership. Consider speaking to an independent expert who can offer advice tailored specifically for you.”