Five years to raise deposit

30-Jan-2006

Recent research has revealed that it now takes first time buyers almost five years to save up for a deposit.

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The time it takes to raise enough money to get onto the first rung of the property ladder has significantly increased over the last decade, according to the Halifax.

Aspiring homeowners who save 15 per cent of their annual pay packets can expect to fund a deposit after five years, compared to three years in 2001 and two years in 1996.

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The amount of money required for a deposit has also grown and is now around 17 per cent of the value of the property, an average amount of£23,967.

"First time buyers need to save harder and for longer than ever before so as to put down a decent deposit on a house," commented Tim Crawford, group economist at Halifax.

"This explains why the number of first time buyers entering the market was close to record lows in 2005."

The survey did confirm a decrease in the total number of first time buyers in the UK, with figures at a 20-year low. However, buyers did begin to return to the market at the end of last year, boosting predictions for 2006.

If you are interested in buying a new house within a 'gifted deposit' scheme whereby you don't need to come up with a deposit but just pay a nominal fee of £5000 click here

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