Analysis from property experts has revealed that the average solo first-time buyer will need to raise a deposit of almost £75,000 to get on the ladder.
According the Rightmove, this figure has doubled in the last decade, with a single person requiring £74,402 as a deposit in order to get mortgage approved.
If you’re buying on your own and can only afford to save £100 a month towards a deposit, it would take you 62 years to save what you need.
While the outlay won’t be as high for everyone, the calculations are based on a single buyer on the median wage being able to borrow a maximum of 4.5 times their salary to purchase a home costing £223,117 (the current average asking price in the UK).
Compared to 10 years ago, this is an increase of 112%. Back then, a person buying on their own on the average salary would have needed £35,053 as a downpayment.
Thankfully for those who are coupled up, purchasing a home with a partner eases some of the financial burden.
For two people buying together, the required deposit size based on the same criteria has increased, but at a slower pace, from £14,269 to £22,312.
This is because two salaries opens up borrowing opportunities. A couple buying together should be able to get a mortgage with a 10% deposit, which would be £22,312.
How long would it take you to save?
£
Clear all
It will take you to save the total amount
Rightmove also commented on the increase in property prices, with the average asking price for a first-time buyer home sitting at 56% higher than 10 years ago.
Tim Bannister, of Rightmove, said of the findings: ‘The next generation of first-time buyers currently need to raise a deposit that is more than 50% higher than ten years ago, while average salaries have only increased by 35%.
‘That’s before you factor in if you’ll be able to get a mortgage, as right now if you’re buying on your own you’d need a hefty deposit of more than 30% to be able to borrow enough to buy a typical first-time buyer home.
‘If a review of the mortgage market could help with the challenge of needing such a big deposit then it would be greatly welcomed by those who are able to demonstrate that they can afford monthly payments, but who are currently locked out of home-ownership.
‘It’s clear to see why there are many renters keen to get on the ladder, as they’re forking out 40% more each month than ten years ago, while low interest rates means average mortgage payments have only increased by 11% over that same time.
‘Although competition among buyers is now starting to ease, we’re still in a market where demand is massively outstripping supply in many areas of the UK.
‘This has already pushed prices to record highs so the challenge for first-time buyers of raising a deposit is not going to get easier.
‘The review will take time and so any solution won’t help in the short-term, so as the cost of living increases more people are likely to look further afield at cheaper areas to get on the ladder.’
Do you have a story to share?
Get in touch by emailing [email protected].
MORE : Seaside property owned by the ‘real’ Doc Martin on sale for £3.75million
MORE : Giving up avocado on toast won’t help us wheelchair users get on the property ladder
MORE : ‘Derelict’ property unoccupied for 60 years is on the market for £350,000
Get all the need-to-know property news, features and advice from Metro every week.
var notifyQ = function () { var i = 0, l = awaitingReady.length; for (i = 0; i < l; i++) { awaitingReady[i](); } }; var ready = function (cb) { if (fbApiInit) { cb(); } else { awaitingReady.push(cb); } }; var checkLoaded = function () { return fbApiInit; }; window.fbAsyncInit = function () { FB.init({ appId: '176908729004638', xfbml: true, version: 'v2.10' }); fbApiInit = true; notifyQ(); }; return { 'ready' : ready, 'loaded' : checkLoaded }; })(); (function () { function injectFBSDK() { if ( window.fbApi && window.fbApi.loaded() ) return; var d = document, s="script", id = 'facebook-jssdk'; var js, fjs = d.getElementsByTagName(s)[0]; if (d.getElementById(id)) { return; } js = d.createElement(s); js.id = id; js.async = true; js.src = "https://connect.facebook.net/en_US/sdk.js"; fjs.parentNode.insertBefore(js, fjs); } if (window.metro) { window.addEventListener('scroll', injectFBSDK, {once: true, passive: true}); } else { window.addEventListener('DOMContentLoaded', injectFBSDK, {once: true}); } })();
For all the latest Lifestyle News Click Here
For the latest news and updates, follow us on Google News.
