Consumer group Which? has revealed the results of a survey focusing on first-time buyers – and it makes for interesting reading. Over 700 first-time buyers took part in the survey at the end of last year (2017), and it revealed 24% of them took over five years to save for their deposit. This was by far the biggest percentage of people when considering the six options that were given for answers. Only 10% of those who responded to the survey took less than 12 months to save their deposit. Meanwhile, 12% took between one and two years, and 17% took between two and three years. A further 16% said it took them between three and four years to save up, while another 13% said it took between four and five years to save. 10% was the most popular deposit amount This is often thought of as the ideal deposit amount for many, so it is perhaps not surprising to see almost half of those who took part in the Which? survey (46%) contributed 10% towards the purchase of their property. The actual amount put down by way of a deposit would depend on the price of the property. However, with average prices put at around £237,794, this means the deposit would be around £23,779 on average. Monthly savings helped almost two-thirds save for their deposit The survey also revealed 62% of participants put money away towards their deposit each month. The most popular ways to do this were to cut down on going out and to strip back outgoings to remove non-essential items. Some were able to rely on an inheritance, while others managed to secure the assistance of friends or relatives to stump up some cash. Saving is very important “There is nothing particularly surprising about the figures gleaned from the Which? research,†said Darren Pescod, CEO of The Mortgage Broker Limited. “It will take many people a few years to save enough for a deposit on their first property. Cutting back on outgoings is one of the easiest and most common-sense ways to start saving more each month. This includes cutting back on holidays, as the research showed. “But for some, the dream of owning their own home still remains just that – a dream. While first-time buyer numbers have increased recently, many still find the price of a property well beyond their reach, and this is unlikely to change for the foreseeable future.†Factoring in rising house prices This is one factor that hasn’t been covered, yet it does have an influence on the potential outcome. As people save for their deposit, so house prices rise. While they can fluctuate, the overall trend is still on the up. That means there can be situations where people can save what they think they will need, only to see house prices changing and moving the goalposts. Persistence and dedication are key to ensuring that all-important deposit is attained.
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