Study shows average first-time buyer in our area will save more than £50,000 for deposit
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The average first-time buyer in our area will save £52,000 for a deposit, research has revealed.
According to online mortgage broker Trussle, first-time buyers’ difficulty to enter the market is putting an estimated £5 billion worth of property deposits in limbo.
The company says this is not only considerably slowing the market, but potentially stalling its recovery as well.
A survey of 2,000 first-time buyers in the UK has shown that over half take more than five years to save enough for a deposit.
With 72 per cent of first-time buyers in a position to look for a home within the next two years, 44 per cent of respondents said they felt confused by the constantly changing deposit requirements and lender criteria.
The pandemic has also impacted home buying, with 76 per cent of first-time buyers feeling worried, confused and angered at how COVID-19 has affected their home ownership aspirations. 65 per cent feel it’s “impossible” to get on the property market and over half of first time buyers admit defeat and have opted to save for another year or more.
To help first-time buyers understand deposit requirements across the UK, a map has been produced for people to see what areas of the UK may be an option with the deposit they’ve saved.
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In SG postcodes – Stevenage, Letchworth, Hitchin, Baldock, Royston and surrounding – the average mortgage deposit for first-time buyers using Trussle is £52,000. This is steep when compared to neighbouring AL postcodes – Welwyn Hatfield and St Albans – which has an average of a £21,000 deposit.
Miles Robinson, head of mortgages at Trussle, said: “While it’s encouraging to see the property market remaining open for business with viewings and valuations remaining in place during the second lockdown, it’s disappointing that first time buyers are struggling to navigate the market.
“One option for first time buyers is to adapt expectations when it comes to location, exploring more affordable areas and seeing the working from home option as a long term alternative. However, the onus cannot continue to sit purely on the first-time buyer and their transactional power cannot remain untapped as we head into an uncertain 2021.”