Ave. Time to Save for First Home Hits 19 years
**If an average UK full time worker saved 10% of their salary each week, they could expect to save enough for a deposit in 19 years.**
Following the data released from Halifax showing the huge increase in first time buyer deposits across the UK, GetAgent looked into how long it might now take an aspiring home owner to save up for their first home.
If the average full time worker in the UK saved 10% of their salary each week (£58.50), they could expect to have saved enough for their deposit (£57,278) in 19 years time - by which point it’s likely house prices will have grown even more!
The picture on a regional level is no less dramatic. First time buyers in London, a city infamous for its housing unaffordability, will be able to hit their savings goal (£130,357) in 35 years time, even though their average salary is significantly higher at £716 a week.
The second most expensive region is the South East, where despite raking in higher than average weekly wages (£632), hopeful buyers will have to save for 20 years before they can afford to put down a deposit.
The most affordable region based on salary to average deposit ratio is Wales. If first time buyers save up 10% of their weekly wage (£54.20), they’ll hit their goal in 12 years.
**Commentary from Rosie Hamilton at GetAgent:**
‘What these figures show is that even those saving a reasonable amount of their wage each month will take a really long time to get that first step onto the housing ladder. Many first time buyers rely heavily on help from parents, or living at home, to bridge the gap, but these options aren’t available to everyone.
We also have to take these figures in the context of the wider housing market too. We’ve seen massive house price increases over the last year - and steady growth in previous years too - however average salaries haven’t kept up.
If this trend continues, it’ll take even longer for first time buyers to raise the funds they need to get a mortgage, and the security that comes with owning their own place.
It’s also important to note that our calculations are based on average salaries for all ages in each region. Young people usually start out on lower salaries, and may find that saving £50 a month (let alone a week) a real challenge.’