According to research commissioned by homebuilder Keepmoat Homes, today’s average first-time buyer is at least 30 years old, seven years older than the same buyer in the 1960s.
Back then, people made their first step onto the property ladder at the age of 23, on average – and paid a deposit of just £595. When controlled to match today’s prices and value, that’s equivalent to a deposit of £12,738.
Today, first-time buyers tend to be in their 30s and must pay an average deposit of £20,622 – according to a poll of 2,000. It shows why people must save for much longer than in the past in order to make their first home investment.
In the 1960s, the average homebuyer spent a little over two years saving up for their deposit to buy a house. In stark contrast, buyers since 2011 had to spend more than five years saving, and the average deposit value sits at more than half of the average household income of £35,634. In fact, nearly half had support from parents to the value of £10,200.
James Thomson, Keepmoat Homes’ CEO, expressed worries about the rapid pace of price growth.
“It’s worrying to see just how much tougher things have become, particularly since 2000, with the research showing house prices have risen by over £55,000 and the average deposit has increased significantly from £12,988 in 2000 to £20,622 today”.
“It isn’t surprising that the research revealed 69 per cent of people think it’s now harder than ever to buy a home.
“The situation for first-time buyers has become increasingly difficult but there are positive things happening too. This includes the Government’s Help to Buy scheme, which has already helped many people onto the property ladder, and the recent abolition of stamp duty for first-time buyers.”