New
research released today by the
Co-operative bank indicates that average
first-time buyers who are starting to
save up a deposit today will not be moving into their first
houses until between 2009-2012, depending on what area of the
country they inhabit.
The research indicates the amount of deposit required for different areas around the country. There is considerable variation between regions, with the north generally requiring a smaller deposit than the south. For instance,
buyers in
London will require a deposit of £25,183, and will not be able to move until 2012. Buyers in the northeast, in contrast, will require only £9,675 and will be able to move in by 2008.
David Newman of the
Co-op bank raised that point that the
news is not all bad: "There are many alternatives available to help
first time buyers onto the
property ladder, from no deposit or
low deposit mortgages, to parental guarantor schemes and packages for
graduates . Anyone interested in
buying a home for the first time should take some advice sooner rather than later."
The figures worked off the assumption that
first-time buyers would save just over £300 per month, which is half of the average first-time buyer’s monthly
mortgage repayment. The figures also assumed that house prices would increase by approximately 3.6 per cent every year.
David Newman concluded: "This
data reveals the problems new
home buyers face in what is clearly for many a
marathon rather than a sprint when running up a decent deposit."
