The average age that prospective first-time buyers expects to buy a property has jumped by five years to 37 since 2020, a study from First Direct shows.
The lender says that 77% of its poll of FTBs and existing homeowners are concerned about their ability to get on the property ladder, with inflation hitting a 41-year high of 11.1%, according to the Office for National Statistics last month.
It adds that 86% of prospective buyers “identified the cost-of-living crisis as a notable obstacle to getting onto the ladder, with not being able to save as much for a deposit cited, by 59%, as a major reason for any delays to their plans”.
The report points out that the average FTB will take seven-and-a-half years to save enough money for a home loan deposit.
It adds that 71% of FTBs intend to use their savings, and 35% plan to use government programmes such as the Help to Buy or shared ownership schemes.
However, 28% believe the only way they’ll be able to secure a home is through an inheritance.
The poll adds that only 35% of prospective FTBs thought they could buy a house on their own, “implying that a significant majority are unable to shoulder the financial burden alone”.
UK house prices fell 1.4% on a monthly basis in November, the largest drop since June 2020, leaving the average home costing £263,788, which is a 4.4% annual rise, according to Nationwide.
First Direct chief executive Chris Pitt says: “Getting on the property ladder is a distant dream for many today. The rise in house prices relative to incomes is well documented, as is the difficulty in saving for a deposit while at the same time paying rent.
“What this study shows is the time it takes to save and realise the dream of home ownership – it is a long time and getting longer. The state of the economy will only make this situation worse.”
First Direct commissioned two research surveys by research firm OnePoll. Between 2 September and 8 September the data firm surveyed 2,000 people across the UK, divided into two groups — homeowners (1,500) and first-time buyers (500). The surveys were conducted online and on mobile devices.
