FTBs saving longer for their deposits
July 26, 2007 by admin
Filed under News, News-Mortgages
First-time buyers (FTBs) are saving for “around five years” to put down a deposit for their home, Your Mortgage said yesterday.
FTBs are also relying on loans from parents more and more, as house prices increase and interest rates rise.
Editor of Your Mortgage Paula John said that the average savings time had increased by a full 11 months in the past year alone.
“Of course, in the light of recent interest rate increases houses are even less affordable for first-time buyers so they are being kicked out of the market altogether”, she said.
Ms John also stated that house prices in London, which have increased by 15 per cent on average in the last year alone, have led FTBs to “lower their sights” and “buy a lot further out”.
According to HousePriceCrash.co.uk, in the last decade numbers of FTBs have shrunk from 55 to 29 per cent of the market.
The Office of National Statistics has also stated that the average price paid by FTBs in the UK has risen by 204 per cent over the same period.
