Analysis of deposits by those taking their first step on the property ladder revealed households in this position were saving £843, on average, per month towards their first home.
This represents a fifth of the combined average first-time buyer income, which is £49,263.
Meanwhile, the average deposit being saved for first homes across the UK was £43,585 according to the Office for National Statistics. It’s a figure which varies across different parts of the country, reaching a low of £21,696 in Blackpool and hitting a high of £170,000 in London.
Across all areas, first-time buyers are managing to set aside 21% of the value of their property in advance.
What’s more, they are taking less time to do this. Figures out today from Post Office Money revealed, in a study of more than 1,000 people who bought their first home in the last two years, deposit saving time has dropped.
Indeed, it took homeowners 3.6 years, on average, to save the lump sum required to take out mortgage in this year’s report, compared to 3.8 years in last year’s.
Savings boost
But rather than attributing this time reduction to more focused saving, Post Office Money thinks it could be down to increased support from parents and other family members.
It said a third of first-time buyers managed to save the full amount by themselves. Meanwhile one in five used the help of a partner and 15% used the Bank of Mum and Dad.
A further 12% gained the money required from an inheritance.
Other methods first-time buyers were using to top up their savings included working overtime – something which 33% of first-time buyers did – and selling items on eBay.
A fifth found a new, higher paying job and 15% used credit cards to cover everyday expenses.
Russ Hunter of Post Office Money, said generous financial contributions from loved ones were helping to speed up the process for first-time buyers.
But, he also gave credit to the diligence of the many aspiring homeowners who were still putting away large sums of money each month and exploring ways to bring in extra income.
“The journey to owning your first home can be stressful, especially for the 29% of first-time buyers who managed to save their deposit without help,” he said.
Post Office has two mortgages for those who want to get on the ladder with lower deposits – Family Link and First Start.
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