According to recent research, it now takes nearly 10 years for first-time buyers in England to save for a home deposit, highlighting the growing affordability challenges. In 2012, Generation Rent, a campaign group, estimated that it would take around 6.8 years to save for a mortgage deposit. However, due to rising private rents and higher house prices, this figure has increased to 9.6 years. The combination of soaring property prices and rents reaching record highs has made saving for a sufficient deposit more difficult than ever. The research suggests that some individuals may not be able to purchase a home until their 40s. Data from the Halifax earlier this year revealed that the average deposit for first-time homebuyers in 2022 was over £62,000, an 8% increase compared to the previous year. Generation Rent analyzed government data on rents, house prices, and salaries to estimate the time it would take for a typical single renter to save for a deposit. Regional variations were evident, with the same amount of time required to save for a deposit in northeast England as it was a decade ago, approximately 4.6 years on average. London was the most affected region, with individuals needing an average of 18.3 years to step onto the property ladder. However, if they rented on their own, they would have to save for 27 years. While some mortgage options exist that allow individuals to buy a home without a deposit, these often come with certain conditions. In May of this year, Skipton building society launched a 100% mortgage aimed at first-time buyers who are unable to save for a deposit, the first of its kind since the 2008 financial crisis. Ben Twomey, a director at Generation Rent, highlighted the challenges faced by workers in the private rented sector, stating that in many parts of the country, they would need to spend at least a decade living and saving before acquiring a mortgage deposit. Londoners face a more daunting prospect, with close to two decades required, and even then, it would only be achievable by sharing accommodations with others into their 40s.
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