Single Londoners need 17 years to save for a house deposit
The average first-time buyer needs to save for 10 and a half years to build up a decent deposit, while single Londoners won’t be able to get a foot on the property ladder until 2035.
The average single first-time buyer, who started saving in the first quarter of 2018, wouldn’t have a 15% deposit until the autumn of 2028, according to research from estate agent, Hamptons International.
This is slightly down on the 11 years recorded this time last year, reflecting slower house price growth and rise in incomes.
Single Londoners would need to save for 17 years to raise a 15% deposit, based on average cash ISA rates. The length of time has come down by six months.
Turning to couples, the research revealed that by sharing rent and everyday household bills such as food and utilities, the time it takes to save a deposit is cut by half.
The average couple buying their first property would need to save for five years, while for a London couple, the average time is eight years.
The fastest place to save for a 15% deposit is in the North East, where it takes a couple an average of two years nine months while for a singleton, it’s six years and three months.
For those looking to save a 5% deposit (the minimum needed to qualify for Help to Buy), a single first-time buyer would take three years and nine months, six and a half years faster than saving up for a 15% deposit.
It would take the average couple under two years to save for a 5% deposit, in contrast to five years when saving for a 15% deposit.
However, for Londoners, it would take three years for a couple and five years and nine months for single first-time buyers.
Aneisha Beveridge, 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.
“Slower house price growth in the capital has meant that it’s now six months quicker for a couple, who share household spending, to save up for a 15% deposit in London. But it still takes a couple in London eight years to save up, twice as long as someone buying a home in the North.”