Santander Mortgages research has highlighted the lengths aspiring first time buyers are going to in order to raise money for their first deposit.
Many are increasingly taking on second jobs, taking out personal loans or sharing payments with friends to raise cash.
With average housing deposits reaching £37,3752 or 17% of overall property value, a third of all non-homeowners believe they will never own a property. However, 26% of current non-homeowners say they are hoping to buy within the next five years.
28% of hopeful first time buyers say they will turn to second jobs or overtime to secure their deposit funds and 27% say they are prepared to take on extra debt by taking out a personal loan to raise the money. This differs considerably to current homeowners, who purchased their properties an average of 12.5 years ago, of which just 5% say they relied on overtime or a second job and 4% took out a loan to raise their deposits.
Savings (54%) remain the most popular way of funding a deposit but the proportion of potential buyers relying on inheritance money has almost doubled, moving from 8% for current homeowners to 14% for aspiring first time buyers.
Renting out a spare room (7%) and sharing the deposit payment with friends (6%) are also increasingly popular methods of affording a deposit.
Phil Cliff, director of Santander Mortgages, said: “The housing market is a tough place
