Saving for a deposit is harder now than it was 30 years ago but first-time buyers today are willing to save for longer to obtain their perfect property.
Research by self-storage firm Space Station discovered one in three house buyers struggle to find a deposit today compared to only one in 20 of their parents’ generation.
A third of people buying their first property said they had been forced to delay their purchase because of challenges saving for a deposit, yet only 5% of those buying their first home between 1988 and 1998 reported the same problem.
House prices back in the late 80s were more affordable, with the average home in 1988 being £45,000 – the equivalent to £117,000 in today’s money. Nowadays, the average price of a home is £209,000 according to Space Station’s figures.
Yet, despite this today’s buyers say they want more for their money and will spend more time saving in order to obtain properties with desirable features such as driveways, large gardens or three bedrooms. Many were also keen to bag a detached or semi-detached home.
Far fewer of their parents’ generation, who bought homes back in the 1980s and 1990s, had houses with these features. What’s more they didn’t save for as long to buy their home.
The research revealed just 3% of those who bought houses between 1988 and 1998 saved for longer to obtain a better property, compared to 24% of people today.
Meanwhile, only 7% lived with their parents while they saved for a deposit 20 to 30 years ago compared to 16% now.
Jessica McDonnell from Leeds recently bought a house with her husband. She said: “When my parents bought our family home in the 1980s, they were offered a 100% mortgage and were able to buy a large three-bedroom house.
“Whereas we were a bit more limited by saving for a deposit and were happy to be able to afford a two-bedroom property. It’s a very different world for young people today.”
Meanwhile, Vlatka Lake, marketing manager at Space Station, said: “As the prices of houses shoot up, it’s not surprising to see so many people renting or living with their parents and struggling to save a deposit.
“It just shows how attitudes to buying a house have really changed over the years and how hard it is for first-time buyers today.”
