First-time buyers need to save hard for up to ten years to afford a deposit for their first home, according to latest research.
Clawing together enough money for a deposit is the biggest challenge facing young people hoping to get onto the property ladder, with 47% of prospective buyers anticipating a wait of at least ten years. Worryingly, nearly one in three claimed they are unable to save for a deposit at all.
The findings from Post Office uncover the reality of buying a home for the first time in the current economic climate, where the average age of a first-time buyer stands at 35 years.
According to the survey, nearly a third of frustrated first-time buyers believe that more Government assistance is needed to provide a foot onto the housing ladder, whilst almost a fifth of those surveyed feel that scrapping stamp duty for first-time buyers would encourage activity in the market.
Sylvia Waycot, finance expert at Moneyfacts.co.uk, believes the lack of high loan-to-value deals in the mortgage market is a major factor. "One of the reasons that FTBs need such large deposits is because it is harder than ever to find a mortgage that will lend to 95% of the value of the home.
"If LTVs were generally raised for FTBs this would make attaining the deposit more realistic," she said.
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