A new study revealed that first time buyers are still struggling to save up enough for a deposit for their first home.
The study said that 22% of first timers in the UK are currently living with their parents and another 26% believe it will take them at least another five years to save up for a house deposit.
In addition to that, 10% estimate that they will have to stay with their family for three to four years, the quarterly first time buyer index from Aldermore, a specialist bank, has revealed.
There doesn’t seem to be a lot of hope for this to change anytime soon as 31% strongly agree that buying a home is currently unachievable for them, a feeling that remained steady over time.
Despite Help to Buy schemes, those trying to get onto the property ladder don’t feel like the Government is offering enough support to make this happen. When asked how the Government could be more helpful, 25% said it should address rising house prices and another 10% think that more homes need to be build.
Overall, a total of 91% think it’s difficult to get onto the country’s property ladder, a number which has slightly decreased from 94% during the last quarter. Saving for a deposit remains the first timer’s biggest struggle, with even 35% naming it as the greater obstacle than rising house prices.
The report also revealed that 22% are planning to receive some help from their family in order to put down a deposit.
“First time buyers have a notoriously difficult time getting on the property ladder. Since saving an adequate deposit remains the biggest obstacle, more and more people have had to move back into the family home to boost their savings,” said Charles McDowell, Aldermore’s commercial director for mortgages.
“We know that first time buyers are relying on the new government to provide much needed solutions but following the recent general election, housing policy is likely to be reviewed again under the newly appointed housing minister, meaning it remains more uncertain than ever.”
