The average buyer will be 37-years-old by the time they get their first home, up five years from 2020, according to data from First Direct.
It now takes nearly eight years for a first-time buyer to save enough for a deposit, and the rising interest rates have led to many delaying their plans. The data revealed that nearly eight in ten (77%) of prospective home buyers are concerned about their ability to get on the property ladder, and with inflation at a 40-year high of 10.1%.
The majority of prospective buyers (86%) said that they saw the cost of living crisis as the biggest barrier to home ownership. Nearly three in 10 of those surveyed said that the only way they would be able to get onto the property ladder was through inheritance.
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More and more banks, including First Direct, are introducing measures to help first-time buyers get on the property ladder soon, like 5% deposits and 40 year mortgage terms to bring their monthly payments down. The survey of 2,000 first time buyers and existing homeowners across the country showed that most first-time buyers (71%) intend to use their savings, and four in ten (35%) are planning to use government programmes such as the help to buy/shared ownership scheme to get their first home.
The research showed that first time buyers on the other hand, are sceptical about their ability to buy a house on their own, with only 35% citing this as a financial possibility, implying that a significant majority are unable to shoulder the financial burden alone.
Chris Pitt, CEO at First Direct, said: “Getting on the property ladder is a distant dream for many today. The rise in house prices relative to incomes is well documented, as is the difficulty in saving for a deposit while at the same time paying rent. What this study shows is the time it takes to save and realise the dream of home ownership – it is a long time and getting longer. The state of the economy will only make this situation worse.”
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