Prospective first-time buyers have been left feeling deflated after the recent rate cut has made it even more challenging to save a deposit, said Moneysupermarket.

It has found that one in five aspiring homeowners say they will need to delay their purchase while they amass the necessary savings. While existing homeowners will benefit from the rate cut, those who are trying to save will find lower savings rates make it harder to grow their money.

How much do they need?

The price comparison site found that 18 to 34 year olds currently saving for a deposit estimate they need an average of £24,880 to buy their first home, a 14% increase from last year’s estimated amount of £21,885.

Most had so far only saved less than half of their desired total (£9,632), taking them an average of seven years if saving alone and three years if saving with a partner.

The average age UK house hunters estimate they will be able to take their first step onto the property ladder is now 37 years old.

Kevin Mountford, banking expert at Moneysupermarket, said: “The Bank of England dealt a blow to savers when cutting interest rates to 0.25 per cent this month and, as a result, first time buyers now face the prospect of having to save for longer due to dwindling savings rates.

“This is coupled with the general rise in house prices seen during the first six months of the year, even though prices dropped slightly in July. However, it shouldn’t be all doom and gloom, as there are still opportunities to save if you look for them and putting the most you can afford away each month will also help.”