Would-be buyers expect three year wait
Research conducted by Clydesdale and Yorkshire banks found that some 40% of first-time buyers are expect to spend more than three years saving a deposit.
A further 46% said they expected to save for between one and three years while 10% said they anticipated a five year wait to buy a home.
An increasing number of people have been forced to move back in with their parents in order to speed this process up, dubbed the ‘boomerang generation’ by some.
More than half of people who have done this expect to be in a position to buy within two years with all expecting to have saved enough within four years.
By comparison, some 30% of people currently renting expect to save for more than four years in order to fund their deposit.
Steve Fletcher, director of retail banking, said more mortgage deals for borrowers with small deposits were coming to the market.
“We understand that saving a deposit can be one of the biggest challenges for first time buyers, particularly for those who already rent a property and have considerable monthly outgoings,” he said.
“This is why Clydesdale and Yorkshire Banks have remained committed to offering mortgages specifically for the market with competitive rates which need just a 5% deposit to help make owning a home a reality.”