Eight years to save house deposit
Nearly two-thirds of aspiring homeowners will need financial support from family as they face a wait eight times longer than in the mid-1990s to get on the housing ladder, according to a survey.It now takes an average of eight years to gather the money for a deposit compared with one year in 1995, prompting 60% of Britons to ask their parents for a financial boost, research from Barclays found.
Househunters in London face the longest wait of over 10 years, up from 11 months in 1995, whereas those in the North West and Wales face a relatively snappy four years and 11 months of saving.
Following London, the buyers with the longest waits are in the South West, at nine years and 11 months, and the West Midlands, at nine years and 10 months.
Analysts say the lengthy wait is often the result of miscalculated budgeting as most first-time buyers underestimate how much they have to save, especially in London.
The average deposit required to buy a home is now 20% of the property price compared with 5% in 1995, setting savers back eight years, whereas most first-time buyers wrongly think it is 16%, which would take them just over six years.
In London, the average first-time buyer underestimates by £22,272, believing they need seven years to raise £47,728, when in fact they will spend nearly 11 years raising £70,000.
In contrast, the average househunter in the North West and the North East overestimates the amount they need to save by £2,000.
Although 60% of Britons need help getting on the ladder, the report says only 30% will get family support, of which two in five see this as a gift that they will not pay back.
The figures are more optimistic than during the 2009 crash when househunters faced a 10-year average wait, with the lowest wait in the North West at six years, five months and the highest in the West Midlands lasting up to 13 years and two months.
The average deposit required to buy a home is now 20% of the property price compared with 5% in 1995, setting savers back eight years, whereas most first-time buyers wrongly think it is 16%, which would take them just over six years.
In London, the average first-time buyer underestimates by £22,272, believing they need seven years to raise £47,728, when in fact they will spend nearly 11 years raising £70,000.
In contrast, the average househunter in the North West and the North East overestimates the amount they need to save by £2,000.
Although 60% of Britons need help getting on the ladder, the report says only 30% will get family support, of which two in five see this as a gift that they will not pay back.
The figures are more optimistic than during the 2009 crash when househunters faced a 10-year average wait, with the lowest wait in the North West at six years, five months and the highest in the West Midlands lasting up to 13 years and two months.
© 2013 Press Association