A typical single first-time buyer would not be able to purchase a home until autumn 2028 if they had started saving for a deposit at the beginning of this year.
That is according to data released by Hamptons International, which has discovered it takes an average of ten and half years for a new buyer getting onto the housing ladder to raise a 15% deposit.
Although this might sound like a mighty challenge, the time taken is lower than it was in 2017 when Hamptons’ analysis suggested it would take 11 years to save the amount required.
Slowing house price growth and a rise in incomes have been attributed to the decrease.
Couples
Taking on the challenge with a partner and sharing rent and household costs such as food and bills will mean saving will be much faster, and will take under half the time than for a single person.
Hamptons’ analysis revealed the average couple buying for the first time would need to save for five years to put down 15% on their house.
But there were also regional variations to consider, Hamptons revealed. Single first-time buyers in London were facing the greatest challenges and would need to save for 17 years to raise 15%, compared to a couple in the capital who would need eight years.
But this is six months quicker than last year for couples, said Hamptons, thanks to the slowdown in London house prices.
Meanwhile, in the North East it would take a couple just under three years to put down a 15% deposit and six years and three months for a single person.
5% Deposit
Saving for a 5% deposit, the minimum needed to qualify for Help to Buy, would take a single first-time buyer three years and nine months and a couple just one year and nine months, Hamptons said.
But in London this would increase to just under six years for a single buyer and three years for a couple.
Aneisha Beveridge, analyst at Hamptons International said: “Saving for a deposit is the still the biggest barrier to buying a first home. It takes a single person more than a decade to save up in the current climate.
“But the additional support from Help to Buy brings down the time it takes to raise a deposit by over six years for a single first-time buyer.
“Slower house price growth in the capital has meant that it’s now six months quicker for a couple, who share the household spending, to save up for a 15% deposit in London .
“But it still takes a couple in London eight years to save up, twice as long as someone buying a home in the North.”