It takes the average person eight years to save for house deposit

The number of first-time buyers has risen since the start of the pandemic, but many relied on family support

Kate Ng
Thursday 10 March 2022 12:14 GMT
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First-time buyers take an average of eight years to save enough money for a down payment on their first home, new research has found.

According to the Barclays Mortgages’ First Time Buyer Index, the average person starts saving for a deposit at 24-years-old and buys their first home when they are 32.

The research, which polled more than 2,000 potential or existing first-time buyers, also found that the number of first-time buyers in the UK has almost doubled in the past year.

However, more than half (56 per cent) revealed that they would have struggled to save up enough funds for a deposit without support or a financial contribution from their family.

First-time buyers paid an average of £281,000 for a house in 2021, a decrease of £12,600 compared to 2020 but more than the average house price in 2019, which was £249,700.

The average income of a first-time buyer purchasing a home on their own has risen from £45,900 in 2019 to £50,800 in 2021.

As for the average household income for joint buyers, this grew from £63,800 in 2019 to £70,500 in 2021 – however, this is down from £72,200 in 2020.

Despite the increase in the number of first-time buyers, nearly two-thirds fear they will never make it onto the property ladder.

The biggest obstacle to becoming a homeowner was saving for a deposit (35 per cent), with more than 70 per cent of people saying they wished they had started saving up sooner.

Another obstacle towards buying a first property was the lack of knowledge about how to go about it, with 55 per cent of respondents revealing they did not know how to start the process.

In addition, 39 per cent of respondents said they were unaware of the extra costs that pile up during the process.

According to the research, the size of deposits has fallen since 2020, when the average deposit was £71,400. Last year, first-time buyers paid up an average of £61,100, with the average monthly repayment coming to £845.

Claire McPhail, mortgage expert at Barclays, said: “It’s encouraging to see that people have been able to get onto the property ladder in increasing numbers since the start of the pandemic.

“But it’s worrying to hear that many still believe they’ll never be able to afford their first property.

“Our index points to the importance of first-time buyers being supported by family so it’s essential for lenders to provide new ways in which first-time buyers can get a head start.”

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