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