An optimistic one in eight people (12 per cent) say they are hoping to buy their first property in the next five years according to research from the Post Office1.
Of those who plan to buy their first home within the next five years, almost a quarter (22 per cent) hope to do so in 2013 with one in seven (14 per cent) expecting to buy in 2012.2
The research also reveals the first time buyers who want to buy and need to raise a deposit, expect to save an average deposit of 16 per cent. Post Office’s own customer data confirms this, with first time buyers in 2011 putting down just over 15 per cent on average.
Mike Cook, head of mortgages at Post Office, said: “First time buyers are the life blood of the property market and our research shows that challenging stories about first time buyers and wider economic issues have not dampened aspirations to get on the housing ladder. It is also interesting to see that despite the resurgence of 10 per cent deposit mortgages recently, the average first time buyer is aiming for the cheaper rates available at 15 or 20 per cent deposit – even if it takes that bit longer to save.”
Almost half of first time buyers (45 per cent) say they are confident they can fund the deposit by themselves. The rest are using a variety of ways to build the deposit, including one in ten (10 per cent) that are planning to use money from an inheritance.
Mike Cook said: “With the end of stamp duty exemption for homes costing below £250,000, first time buyers will now have to find the money for stamp duty as well as their deposit. It appears that for the majority would-be buyers the good old savings account comes to the rescue with the rest receiving a helping hand from family and the government.”
