The average prospective buyer now predicts they will be 37 years old by the time they get their first home, according to new research from First Direct.
This compares to first time buyers from 2020 who, on average, secured their first home at age 32.
The research comes as part of the banks’ “Leap for the Ladder campaign”, which aims to assist first-time buyers in this tough economic climate. To support first time buyers and help them reach the property ladder, First Direct offers a range of features and products, including 5% deposit mortgages and 40-year mortgage terms.
The data revealed that nearly eight in ten (77%) of prospective home buyers are concerned about their ability to get on the property ladder, and with inflation at a 40-year high of 10.1%, purse strings are set to tighten even more. The majority of prospective buyers (86%) identified the cost-of-living crisis as a notable obstacle to getting on the ladder, with not being able to save as much for a deposit cited (59%) as a major reason for any delays to their plans.
The survey of 2,000 first time buyers and existing homeowners across the country also showed that the average first time buyer will take 7.5 years to save enough money for a mortgage deposit. First Direct says this highlights the critical need for accessible first time buyer-led mortgage products, as existing homeowners surveyed took on average only five years to secure their first home.
When it comes to funding this costly purchase, nearly 3 in 10 (28%) people who are waiting to get on the ladder believe the only way they’ll be able to secure a home is through an inheritance – which they are yet to receive.
Most first-time buyers (71%), however, intend to use their savings, and four in ten (35%) are planning to use government programmes such as the help to buy/shared ownership scheme.
Pooling assets with a partner, close relative, or friend can be an alternative way to secure the cash needed for a mortgage; However, more than half (56%) of those who currently own a property did so without the assistance of a partner or sibling. The research showed that first time buyers on the other hand, are sceptical about their ability to buy a house on their own, with only 35% citing this as a financial possibility, implying that a significant majority are unable to shoulder the financial burden alone.
Chris Pitt, CEO at First Direct, said: “Getting on the property ladder is a distant dream for many today. The rise in house prices relative to incomes is well documented, as is the difficulty in saving for a deposit while at the same time paying rent. What this study shows is the time it takes to save and realise the dream of home ownership – it is a long time and getting longer. The state of the economy will only make this situation worse.”