CPS Homes

Eight years to save for a mortgage deposit?

Aspiring first-time buyers need to save for up to eight and a half years for a housing deposit, according to figures released by Yorkshire Building Society. They are typically saving £248 a month, with lenders often demanding 20% deposits to get a mortgage.

The report questioned over 2000 potential and existing home buyers. The figures vary regionally: the average deposit required in Wales is about £16,000, compared to £22,000 in Scotland and a massive £60,000 in London. Differences in average wages also mean that the time needed to save a deposit varies accordingly.

56% of those surveyed said raising a deposit was the biggest challenge they faced. 40% think house prices are too high, and 16% have concerns about their credit history.

Help from parents has become increasingly important for getting on the hosing ladder. Around 1 in 6 who bought their first home last year had financial assistance from mum and dad, compared to fewer than 1 in 7 of property buyers in 2007.

The Council of Mortgage Lenders estimates at gross mortgage lending in September was £11.6 billion, down 10% from August, and 15% from September 2011. However, monthly patterns over the summer may have been distorted by the Olympics.

The slow housing market means that more people are renting for longer, leading to concerns about "generation rent". Landlords stand to benefit from the increased demand for rental property, but at the risk of a continued slower overall property market. But whatever the market, there are many opportunities for investing in and selling property, and CPS has the experience and expertise to make the best of all circumstances.

24 October 2012

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