FTBs are now being forced to save, on average, £37,632 to buy their first home, supporting the view that new entrants are increasingly being priced out of the housing market.
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Robin Amlôt, senior editor at Moneyextra, said: “The average mortgage deposit being put down by FTBs in February 2007 is almost 11 per cent higher than a year ago at an eye-watering £37,632. It’s no wonder the so-called lower end of the market is stalling with people attempting buy having to save effectively a year and half’s average earnings.”
Despite the increased deposit needed to buy a property, the average price being paid by FTBs for a property rose 4.68 per cent in the last year, compared to 7.38 per cent across the whole market.
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The average property price for an FTB now stands at £177,096, while the whole market average reached £222,923 in February.
However, the average loan-to-value sought by FTBs fell in February to 78.75 per cent, from 79.93 per cent in January.
Michael Brill, director at Baronworth Investment Services, commented: “People are waiting longer so they can save a deposit but prices are rising faster so they aren’t seeing any benefit. The only FTBs I’m seeing with a reasonable deposit are those who have had help from parents
.”
