New figures reveal that on average, first-time-buyers have no alternative but to rent a property for a longer period of time, due to a 10 year save for a 15% deposit, despite the halt in property prices.
According to Nationwide, property prices have experienced a decline by 0.2% during the May period. In addition, annual growth plateaued to 2.4% from the previous 2.6% in April. Yet, there remains a high demand for rental properties due to the difficulty of saving for and securing a deposit for a mortgage.
During the beginning of 2018, the average single first-time-buyer would need to save for 10 and a half years if they were to raise a 15% deposit on their first property, according to recent data provided by Hamptons International.
For a first-time-buyer who began saving in the first quarter of the year, the purchasing of a property would not be possible until the autumn of 2028. Similarly, a single Londoner intending to invest in their first property would need to save for 17 years in order to raise a 15% deposit.
On the other hand, the average couple intending on buying their first home would need to save for five years in order to purchase their own property by the spring of 2023, five years less than a single first-time-buyer.
Aneisha Beveridge, an analyst at Hamptons International, commented: “Saving a deposit is 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 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.”