UK home buyers save for up to ten years for deposits
(ShareCast News) - First time property buyers in the UK often have to save for as long as 10 years in order to place a deposit on a house, with more than two thirds saying it took more than two years, new research has found.
Almost one-quarter (23%) of first time buyers had to save somewhere between five and 10 years in order to save for a deposit, according to Which? Mortgage Advisers, which conducted the survey of over 1,000 first time buyers as part of a larger study into home-buying activity in the UK.
The so-called "generation renters" have had to deal with rising house prices and an increasing difficulty in getting on the property ladder, and the study revealed that almost one-third of first time buyers had to borrow money from their parents in order to lay down a deposit.
"Our research reveals the real difficulty that first time buyers have in saving enough money for a deposit," said David Blake, Principal Mortgage Adviser, with Which?.
"Given how hard it can be to get onto the property ladder, ensuring you have the right mortgage could not be more important. Seeking independent mortgage advice early on is vital in order to know what options are open to you."
Property prices in the UK unexpectedly rose in February, according to mortgage lender Nationwide. They gained 0.6% during the month in comparison with a 0.2% rise in January. On an annual basis, house prices have risen 4.5% compared with the same period last year.