First-time buyers are increasingly struggling with saving money towards the deposit on their first home, new research shows.
The Halifax First Time Buyer Annual Review 2006, which tracks the affordability of housing, found that it takes the average first-time buyer up to five years of saving money before they have enough for a deposit.
Over the last five years, the amount first-time buyers put down as a deposit has increased from £9,894 (42 per cent of the average annual salary) to £23,967, which is more than three-quarters of the average yearly income.
Halifax, which is the country's biggest mortgage lender for first-time buyer mortgages, further revealed that Gerrards Cross in Buckinghamshire is the least affordable town for first-time buyers.
Of the ten least affordable areas for first-time buyers, nine were in London and the south-east.
"First-time buyers need to save harder and for longer than ever before so as to put down a decent deposit on a house," comments Tim Crawford, group economist at Halifax.
"This explains why the number of first-time buyers entering the market was close to record lows in 2005."
Compared to in Gerrards Cross, where the average property price is almost 18 times higher as the average income of first-time buyers, Nelson in Lancashire was found to be the most affordable town.
Here, the average house price is just 3.3 per cent higher than the average first-time buyer's income.
First-time buyers struggling with saving money, review finds
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First-time buyers struggling with saving money, review finds
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