First time buyers has to save even longer in order to buy their first property.
National Savings and Investments (NS&I) showed in a new report that the average first time buyer has to save longer than ever - four years and nine months - in order to be able to pay a cash deposit of five per cent.
Average deposits in 2004 were £1,000 lower than it is now, and the average time a first time buyer had to save up for a deposit was only four years.
"Despite a recent cooling house market, house prices have continued to outstrip both savings rates and incomes over the last year which means potential first-time buyers need to start saving sooner and harder to get into the market," said Dax Harkins, senior savings strategist at NS&I.
First time buyers in East Anglia have to save the longest for deposits, an average period of five years.
The best market for first time buyers can be found in Scotland. The average time Scottish first time buyers save for their deposit is three years and nine months.
However, the NS&I predicted an improvement over the next 12 months. They said a cooling housing market would make it easier for first time buyers to get onto the property ladder.
The government has also recently announced a shared-equity scheme and a house building drive aimed at helping first time buyers with buying their first property.
First time buyers saving longer for deposits
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First time buyers saving longer for deposits
Wed, 01 Jun 2005
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