Hamptons – FTBs need 10 years to raise deposit
The average single first-time buyer in England and Wales needs 10 years and three months to save enough for a deposit, according to data collected by Hamptons.
The data has been analysed on the basis that the FTB would require a 15 per cent deposit.
The time needed to save for a deposit between Q4 2008 and Q4 2018 increased in London by 21 months, in the South East by 18 months and in the South West by six months.
However, the figures show that the time needed to save up for a deposit within the same time frame has improved across Wales, the Midlands and the North of England.
In the East Midlands, West Midlands and the North East, the time required to save for a deposit fell by 12 months – the steepest decline.
The North West was the only region since Q4 2008 to post no change.
Furthermore, measured from Q4 2016 – so on a two-year basis – eight out of ten regions recorded a fall in the time needed to save a deposit, with the East Midlands, East of England and Wales seeing the largest joint decline at nine months since Q4 2016.
The remaining two regions, the North East and the North West posted no change over the same time frame.
Hamptons International head of research Aneisha Beveridge comments: “Saving a deposit is still the biggest barrier to buying a home, but things did improve in 2018.
“Slowing house price growth, which is expected to continue, combined with rising wages, meant that last year it was six months quicker to save for a home than it was two years earlier.
“Despite price growth cooling off more recently, it still takes a single person over 15 years to save up for a 15 per cent deposit for a home in the capital.
“This is over nine years longer than in the North East, which is the quickest region to save for a home.”
Source: Mortgage Strategy