A report in industry newspaper Financial Adviser has highlighted that first time buyers are having to save for longer to put 5% deposit on their first home. In December 2004, the average price of a house is now £137,000, which means a 5% deposit is £6866. Ten years ago, a first time property was just £49,000, which meant a deposit of just £2500.
Our view
This story, whilst common sense, complements a story issued by National Savings in the summer where they suggested that the average first time buyer has to save an extra year for their deposit compared to ten years ago.