A decade of saving for single first-time buyers

ASINGLE first-time buyer faces saving for just over a decade to raise a 15% deposit, rising to 17 years for someone trying to get on the property ladder in London, a report has found.

Across England and Wales, the average single first-time buyer faces saving for 10 and-a-half years to raise a 15% deposit on their first home, according to Hamptons International.

This means someone starting saving now could expect to buy their first home in 2028 – or 2035 in London.

The research used Office for National Statistics (ONS) earnings figures for people aged in their 20s, reflecting the age of people saving for their first home, and took into account potential pay rises as households move up the career ladder.

It assumed that households could save 22% of their remaining income towards a deposit, after regular bills were taken into account.

It also assumed wages and house prices would increase in line with Office for Budget Responsibility (OBR) forecasts and that first-time buyers would buy a home priced at around 85% of the average house price in their region.

The time it takes to save for a deposit has fallen slightly. A year ago, it would have taken 11 years to save, according to the calculations.

The slightly faster time scale compared with the situation a year ago reflects slower house price growth and a rise in incomes, the report said.

Meanwhile, a couple saving together to get on the property ladder would take around five years to raise a 15% deposit – meaning they could set up home in 2023.

The fastest place to save for a 15% deposit in the study is in the North East, where it takes a couple just under three years and a single person six years and three months.

The report also looked at how long it takes for people to save a 5% deposit - the level of deposit people often put down when using Help to Buy schemes.

It found that for a single first-time buyer it would take three years and nine months to save up for a 5% deposit - over six years faster than saving up for a 15% deposit.

A couple saving for a 5% deposit on their first home could typically expect to do so in one year and nine months.

Aneisha Beveridge, an analyst at Hamptons International, said: “Saving a deposit is still the biggest barrier to buying a first home.

“It takes a single person more than a decade to save up in the current climate.

“But the additional support from Help to Buy brings down the time it takes to raise a deposit by over six years for a single first-time buyer.”

She continued: “It still takes a couple in London eight years to save up, twice as long as someone buying a home in the North.”

Here is the average length of time it could take for a couple, followed by a single person, to save for a 15% deposit, according to Hamptons International:

East, five years six months, 12 years three months

East Midlands, four years, nine years three months London, eight years, 17 years North East, two years nine months, six years three months

North West, three years six months, eight years three months

South East, six years three months, 14 years

South West, three years six months, 13 years

Wales, four years three months, seven years nine months

West Midlands, three years six months, nine years six months

Yorkshire and the Humber, three years six months, eight years

The additional support from Help To Buy brings down the time it takes to raise a deposit by over six years for a single first time buyer Aneisha Beveridge