How first time buyers are saving for a deposit
A new survey suggests one in eight people are hoping to buy their first property in the next five years. It follows a study earlier in the week from Halifax that Britons are becoming increasingly confident about the prospects for the housing market.
Research by the Post Office showed that of those who aim to buy their first home within the next five years, nearly a quarter want to do so in 2013 with 14% expecting to buy this year. First time buyers who need to come up with a deposit expect to save an average deposit of 16%.
“First time buyers are the life blood of the property market,” says Mike Cook, Head of Mortgages at Post Office, “and our research shows that challenging stories about first time buyers and wider economic issues have not dampened aspirations to get on the housing ladder. It is also interesting to see that despite the resurgence of 10 per cent deposit mortgages recently, the average first time buyer is aiming for the cheaper rates available at 15 or 20 per cent deposit – even if it takes that bit longer to save.”
And this is how those first-timers are hoping to raise that money:
45% – Saving the whole amount by myself
28% – With the help of my partner
16% – With help from my parents
16% – Using the Government’s FirstBuy scheme
10% – With money from an inheritance
7% – With help from another family member
The first time buyer confidence is also apparent elsewhere according to the latest Halifax Housing Market Confidence tracker. More than 1 in 3 of respondents predict that house prices will increase over the next 12 months, compared to about 20% who think they will fall. This is also the most positive view since Halifax began measuring consumer confidence in the housing market a year ago.
“It is encouraging that the level of consumer confidence in the housing market continues to improve,” says Martin Ellis, housing economist at Halifax, “albeit from a very low base. This is consistent with the broad stability that we have been seeing in house prices nationally in recent months. There is, however, a substantial north-south divide to the improvement in housing confidence which is reflective of property prices in the South currently more resilient than in the North.”
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