"We’ve found that the majority of determined first-time buyers think the difficulties are ultimately worth it in order to get on the property ladder."
This has delayed a third (32%) from buying a property and realising their homebuying dreams, with delays of 20 months on average. Nearly two-thirds of all first-time buyer hopefuls have had to scale back their regular savings (64%), likely increasing tan anticipated
On average, prospective first-time buyers plan to save £43,500 for a deposit. First-time buyers in London and the South East expect to save the most at £52,777 and £54,570 respectively, with Yorkshire buyers expected to save nearly half of that (£27,379) on average.
While half of prospective first-time buyers (51%) are utilising savings accounts to save for a deposit that typically offer higher rates of interest, a significant amount are holding their savings in low-interest savings vehicles, with two out of five (44%) using current accounts, despite the current high-inflation environment eroding the real-term value of these savings. Additionally, nearly one in 10 (8%) are relying on cryptocurrency to generate deposit funds, despite its considerable volatility.
When it comes to first-time buyers struggling to save for a deposit, some have criticised would-be buyers for failing to make sacrifices or cut costs to reach their deposit goals.
However, using the nationwide deposit average of £43,500, this would equate to:
• 7,250 portions of smashed avocado on toast
• 3,702 Uber rides
• 72 months’ rent
• 1,087 months’ gym membership
• 1,366 Ryanair flights
Jon Cooper, head of mortgage distribution at Aldermore, said: “While saving in this current economic climate may feel like a long and arduous journey, we’ve found that the majority of determined first-time buyers think the difficulties are ultimately worth it in order to get on the property ladder.
“It’s important that prospective buyers are aware of the support available to them. Would-be buyers should consider seeking advice from a broker who can lend a helping hand and guide you through the process of becoming a homeowner.”
