Property News > Looking To Buy? Here’s How Long It Takes To Save For A Deposit
Looking To Buy? Here’s How Long It Takes To Save For A Deposit
One of the biggest issues when looking to buy a new home is having the money to put down a deposit.For most of us it’s a case of beg, borrow and steal, well, maybe not the latter, as we look to scrape together 20% to get the home of our dreams.It’s never simple though. This month we’ve been analysing the differences in renting versus buying and have found that it takes first time buyers a staggering eight years to save for a deposit.Our study, which explores the true cost of renting and buying, found that across eight years the average person would have to save 30% of their annual take home salary each year in order to be able to afford the typical £51,000 average deposit, while in London that figure is £80,000.The capital naturally has the most expensive deposits, a huge £30,000 higher than just a decade ago, with the North generally being much easier to save for first time buyers.That’s reflective in the amount of time it takes to save for a deposit. In the North and Scotland, first time buyers will take just over eight years to save for a property, compared to the capital and South East which approaches a decade.There has been some help for first time buyers with the abolishment of Stamp Duty, which has saved money for over 16,000 first time buyers, with around £5,000 each being kept in the pocket. That being said, the number of mortgages being handed to young adults remains consistent, despite the length of time it takes to afford a deposit, with £11.9billion across 65,000 accepted loans, with lenders still very much seeing plenty of custom.