Welcome to the property ladder's high-stakes game, where first-time buyers must save for almost six and a half years to secure their spot. According to recent research by property comparison website reallymoving, a single first-time buyer must squirrel away funds for 76 months to cover a 10% deposit and moving costs, including conveyancing, surveying, and removals.
The study, based on conveyancing quote requests, found that first-time buyers typically pay 25% less for a property than other buyers. However, to purchase a property at the UK's average first-time buyer price of £234,000, they need to save a whopping £23,400 for a 10% deposit. Add in £1,314 for conveyancing, £420 for a survey, and £420 for removals, and the total soars to £25,554.
The savings journey becomes less daunting when two people join forces. If both are earning the national average wage, the time to save is halved to 38 months. However, the path to homeownership is steeper in the South of England, where first-time buyers wait around 2.5 years longer than their Northern counterparts.
The research also highlighted a shift in first-time buyer trends. In 2023, over 50% of first-time buyers purchased a three-bedroom property or larger, reflecting the rising average age of homeownership, now 33.
Reallymoving founder Rob Houghton expressed concern over the lack of support for first-time buyers, especially with the cost of living and rents remaining high. He called for meaningful action to increase housing supply, including social housing, to make home ownership more affordable in the long term.
So, for first-time buyers, the property market may currently feel like a marathon, not a sprint. But remember, every savings step is a step closer to crossing the finish line and owning your dream home.
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