First-time buyers face years of scrimping with average deposits now over £10,000

Trying to buy your first home? Get ready for a long wait! A new report reveals that first-time buyers are now facing almost a decade of saving just to afford a deposit.

The Home Builders Federation (HBF) has released a report called “Broken Ladder” that paints a bleak picture for those hoping to get on the property ladder.

The report says that the average first-time buyer would need to save 50% of their monthly income for nine years just to afford the deposit on a house. That means if you have £500 left each month after paying your bills, you’d need to save every penny for nine years!

And it gets worse…

Thinking of buying in London or the South East? Be prepared to save for over 13 years! Yes, you read that right – over a decade of saving!

Why is it so hard?

• House prices are high: The average first-time buyer home now costs around £250,000.
• Deposits are huge: You’ll likely need a deposit of at least 5%, which is a massive £12,500.
• Living costs are up: Rent, energy bills, and council tax are eating into people’s incomes, leaving less money to save.

What about mortgages?

The HBF report also found that mortgages are becoming increasingly difficult to get. Back in 2014, the average mortgage payment for a first-time buyer was 47% of their take-home pay. Now it’s a massive 67%!

What can be done?

The HBF is calling on the Government to step in and help first-time buyers. They want to see:

• A new scheme to help boost first-time buyer deposits.
• More “green mortgages” that take energy efficiency into account.

The bottom line? It’s tougher than ever to buy your first home. The HBF warns that unless the Government acts, homeownership will become a distant dream for many.