The average time it takes for a first-time buyer to purchase a home has risen by three years in some parts of Britain, according to Yes Homebuyers.
The average time it takes for a first-time buyer to purchase a home has risen by three years in some parts of Britain, according to Yes Homebuyers.
The firm looked at the cost of the average FTB mortgage deposit at 15% of the current average FTB house price.
It then looked at how long it was taking to save for this deposit based on saving 20% of an FTBs net monthly income and how this timeline has changed since 2012.
The research shows that the average FTB house price is £209,163, therefore the monitory value of a 15% deposit is £31,374.
Furthermore, the average FTB’s net monthly income is £1,970, saving 20% of which accounts for £394.
As a result, it is currently taking the average FTB in Britain 6.6 years to save for a mortgage deposit.
However in London, it currently takes the average FTB 11 years to save enough for a 15% deposit, as the average property price for an FTB in the capital is £445,945.
The data shows that there is only one region where the FTB mortgage deposit saving timeline has reduced since 2012.
In the North East, the average FTB would need 4.3 years to save a 15% deposit on the current FTB property price of £119,411.
This is a marginal reduction on the 4.4 years that was required in 2012.
Matthew Cooper, founder and managing director of Yes Homebuyers, said: “We seem to consider consistent house price growth as a cause for celebration in Britain.
“However, the reality is that these ever increasing property prices are pushing the dream of homeownership further out of reach for many first-time buyers.
“To think that the timeline of saving for a mortgage deposit has increased by as much as three years since 2012 alone is quite shocking and really highlights the huge task facing those who wish to get their first foot on the ladder.
“Instead of delivering on their promises of building new homes, the government has consistently added fuel to this affordability fire by stoking demand via schemes like Help to Buy.
“Until they actually increase the supply of stock reaching the market, this gap will continue to widen and the average age of the nation’s first-time buyers will continue to climb as they are forced to save for far longer, simply to accumulate enough for a mortgage deposit.”
