A single first-time buyer in England and Wales could take over 11 years to save for a 15% deposit on a home, according to research from estate agent Hamptons International. In London, the wait extends to nearly 18 years for a solo saver.
The study, covering the first quarter of 2017, found that a single person starting from scratch would need 11 years and three months to raise a deposit, up from 10-and-a-half years a year earlier. This increase reflects rising house prices outpacing income growth.
Couples saving together can reduce the time by about five years, needing an average of six years and three months. However, in London, even couples face a wait of over a decade, at 10 years and nine months.
The Time to Save index calculates how much aspiring buyers have left after tax, rent, and essential bills, assuming they can save 22% of that surplus. It also assumes first-time buyers purchase a home at 85% of the regional average price.
Fionnuala Earley, residential research director at Hamptons International, said: “Saving a deposit is still the biggest barrier to buying a first home. It takes a single person more than 11 years to save up in current conditions.” She noted that while falling mortgage rates have helped elsewhere, London’s soaring house prices have eroded affordability since 2012.
