New research from the Council of Mortgage Lenders has found that fewer households under the age of 30, which rely on their own savings have been able to buy for the first time, as they are finding it hard to raise a suitable deposit. In 1997, the average deposit put down by first time buyers was £4,000. By last year, this figure had risen to £35,000. It is believed that there is no evidence of ˜serious saving" for a deposit by this age group, and also little evidence that saving will result in a deposit of sufficient size.
The research also found that a shortage of affordable housing for first time buyers was also a major issue. There has been a 30% increase in the number of households over the last 30 years, but also a 50% decrease in the level of new house building. In 20 years time, two-thirds of first time buyers will be unable to afford their own home unless this is rectified.
Our view
Like in the 50's, 60's and 70's people had to save for years before being able to afford a house - this is coming around full circle. We just need to be responsible and save. Need some help with a mortgage? Visit our mortgage site.