First-time buyers are worried the interest rate cut kills their chances of saving for a deposit

Helen Cahill
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Would-be homeowners think they will struggle to save (Source: Getty)

One fifth of 18 to 34 year old prospective buyers say they will find it difficult to save for a deposit due to the recent cut in interest rates.

Research from MoneySuperMarket found 21 per cent of this age group think the interest rate cut will mean they will have to wait for longer to climb onto the housing ladder.

MoneySuperMarket said first time buyers expect to be 37 years old by the time they land a property; in the east of England, this rises to 42 years old.

Read more: Mapped: First-time buyer house prices in every London borough

The majority of 18 to 34 year olds surveyed said they had saved less than half of the amount they need for a deposit.

On average, the respondents estimated they would need £24,880 for a deposit on their first home.

Kevin Mountford, banking expert at MoneySuperMarket, said: "The Bank of England dealt a blow to savers when cutting interest rates to 0.25 per cent this month and, as a result, first time buyers now face the prospect of having to save for longer due to dwindling savings rates.

"This is coupled with the general rise in house prices seen during the first six months of this year, even though prices dropped slightly in July."

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