First time buyers in some parts of the country will have to save for at least ten years if they are to afford the deposit for a home. Single people and those with young families find it particularly hard, says Shelter, the housing charity.
The high cost of living, static wages and rising house prices mean that childless couples must save for six and a half years in order to accumulate a 20 per cent deposit for their first home in England, and single people, 13 years. Even though wages are generally higher in the south east and in London, so too are rents, which means that it takes first time buyers longer to build sufficient funds for a deposit.
According to new research by Shelter, a couple living in London with a joint income of £53,384 will take 13 and a half years to save for a deposit on a home. Couples living in Windsor, Brighton, Maidenhead, Devon, Surrey and Oxfordshire will also have to save for more than ten years.
Couples with young children face an even longer struggle. Shelter says that when one parent works part-time, it takes 12 years to save enough for a deposit in England. For young families living in London, it would take 26 years. Single Londoners might find themselves saving for 29 years, to be able to afford a 20 per cent deposit.
The research for Shelter was undertaken by Liverpool Economics, which took into account house prices, wages and rents. Shelter’s CEO, Campbell Robb, said that home ownership is no longer affordable for many first time buyers and is now just a fantasy.
Buyers who succeed in raising a deposit of 20 per cent will find it easier to get mortgages at lower rates of interest. However, many mortgage companies do offer mortgages for buyers who can raise only a 5 per cent deposit.
