First-time buyers need to save eight years to build up deposit

 
Ben Southwood
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THOSE looking to get their foot on the housing ladder are taking eight years to save up the necessary deposit, according to research out this morning.

The average deposit on a first home was £31,059 during 2012, Barclays said today, meaning potential buyers had to save eight times as long as in 1995, when a deposit could be built up in just a year.

Londoners wishing to own their own home find themselves faced with a £70,000 average deposit, Barclays says, forcing them to save for 11 years.

This is driving first timers to the bank of mum and dad – 30 per cent of those surveyed by Barclays said they expected to get financial help from their family, with relatives contributing £12,212 on average.

And more than a third (38 per cent) of aspiring homeowners see such a cash infusion as a gift, rather than a loan they must pay back.

But 2012 provided a partial reprieve for first-time buyers, according to separate research from Esurv, also released today, with total loans to first-time buyers enjoying an 11 per cent boost – though from a low base.