How long does it take millennials to save a deposit?
The most expensive place to save for a deposit in England is, unsurpisingly, in Greater London, where you can expect to save for up to 15 years and 11 months, according to ABC Finance.
The UK average is eight years and four months, based on a millennial saving 20% a month of their take-home pay on a typical salary of £25,920.
The UK’s most affordable place is the North East. However, with deposits as low as £25,162 it would still take a millennial earning the average salary of £25,920 nearly five years to save for the deposit.
The commercial finance business said that property ownership is out of the grasp of most people born after Gen X, especially for those not born into a family of wealth or property assets.
And it has created an interactive map to show how long it would take to save a deposit across the country.
Bank of Mum and Dad
One of the biggest indicators of whether or not someone is able to buy a house is their parents’ property wealth.
Over 50% of UK ‘Baby Boomers’ owned property by age 30, however, this figure has plummeted as less than 30% of millennials.
Gary Hemming, commercial lending director at ABC Finance Ltd, said: “Buying property is without a doubt far more difficult for young people than it’s ever been, and house prices are far higher relative to the average wage than ever before. We’re in a unique position historically with both a shaky economy and a turbulent housing market making it almost impossible for young first-time buyers to take that initial step on the ladder.”
Dominik Lipnicki, director of mortgage advisers Your Mortgage Decisions, added: “It has never been harder for a young person to get on a housing ladder. We have seen people living longer at home with most not buying their first home before the age of 30.”