First-time buyers still have to save for over a decade to get a home in London

Helen Cahill
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Central London Rent Rates Reach £5000 A Month
The Bank of England's interest rate cut has made it harder to save (Source: Getty)

First-time buyers may have hoped the EU referendum would reverse house price growth in the UK, but a Brexit housing crash has not materialised, and saving for a deposit has not become any easier.

Would-be homeowners have to save for just over 10 years to get a deposit, according to research by Hamptons International, a figure that hasn't changed since last year. In London, the number rises to 14 years.

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For couples across the UK, the situation has improved slightly. An average couple aged between 21 and 29 can now save a 15 per cent deposit in five and a half years - three months faster than they could last year.

But in London, couples still have to save for the same amount of time as they did last year (nine years).

However, Hamptons said the Bank of England's move to cut interest rates would reduce mortgage payments by £244 for first-time buyers if the rate cut is fully passed on. In London, mortgage payments would be £518 lower.

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Fionnuala Earley, director of residential research at Hamptons International, said: "The Bank of England's rate cut should brighten the financial outlook for new homeowners. Hints that there could be another cut could be a bonus for new buyers.

"While the rate cut does little for those still saving for their first home, there is some respite as the rate of house price growth is slowing and prices are expected to fall slightly in 2017.

"Providing incomes continue to rise, their ability to save will improve, meaning the dream of a new home could become a reality a little sooner."

Recent data from Rightmove showed that house prices are now rebounding after the lull following the Brexit vote, as the property market heats up following the traditionally slower summer months.

House prices after Brexit: A short history

  1. In June, RICS predicted house prices would drop for the first time since 2012
  2. Rightmove report house prices fell by 0.2 per cent in June
  3. Brexit vote, everyone wants to know what will happen to house prices, so we asked the experts
  4. FTSE 100-listed housebuilder shares take a tumble
  5. Data from Halifax shows house prices fell after the Brexit vote
  6. Mortgage approvals fell to an 18-month low in July
  7. Nationwide reports house prices went up again in August