Long wait for first home deposit
Prospective first time buyers expect a long wait when saving up for their first house.
According to research by Post Office Mortgages, 47 per cent of prospective homeowners expect it to take ten years or more to save a deposit.
As usual there is a regional divide, with 65 per cent of would-be buyers in the South East and 56 per cent in the South West believing it will be ten years before they can afford a deposit, while 47 per cent of Londoners said it would take “a lot longer”.
The research also reveals that 35 is now the average age a prospective homebuyer expects to buy their first home, rising steadily since the 1960s. Those who bought their first home in the early 1960s were on average just 24.
The biggest barrier is raising a deposit, with 32 per cent saying only a better paid job of inheritance would make them rethink the current age they expect to get on the ladder.
Around 18 per cent of those asked said that they did not think they could afford the repayments, which head of Post Office Mortgages John Willcock said was an unfounded worry, as the average renter pays £876 more a year than the average homeowner.
The survey also found that 29 per cent would be encouraged to buy a home if they were offered more government assistance and 19 per cent said a re-introduction of no stamp duty for first time buyers would help them get a foot on the property ladder.
Willcock added: “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.
“However, there are a number of competitive mortgage options for people keen to buy their own home, and prospective buyers may not have to wait until they’re 35 to get a foot on the ladder.”