The findings reveal a marked disparity between the average time to save for a house in 2005 (4 years), compared with 2006 (4 years 11 months).
First-time buyers (FTBs) in London are hit the hardest, needing to save for 7 years and 5 months on average in 2006; 2 years longer than they needed to save in 2005 (5 years, 5 months). This reflects the rapidly increasing house prices in addition to the fact that first-time buyer homes in the capital are now breaking the 3% stamp duty barrier (£250,819).
However, other parts of the country fare better. First-time buyers in the Midlands and the South of England (both East and West) each needed to save for one month less in 2006 than in 2005. East Anglia was the only region that recorded no change in the time to save for a first home.
Paul Chafer, sales and marketing director at Stroud & Swindon, commented: “These findings paint a worrying picture of the struggle first-time buyers face in attempting to get onto the property ladder. The problems this sector of the community face was further confirmed in our most recent consumer research. This revealed that 30% of Britons said that a lack of finances delayed the age at which they could afford to buy their first home.
“Britons are increasingly putting their lives on hold due to the debt they are in. Affordability is a key issue in the current economic climate. When saving for a house deposit, first time buyers must shop around to find the most competitive savings accounts, in order to bring themselves one step closer to that first rung on the property ladder.”
