The Housing charity Shelter has said that first-time homebuyers saving for a deposit have now had the goalposts moved almost beyond their reach.
In a new report, Shelter found that a young couple trying to save for a deposit on their first home would now have to save for 6 and a half years, while a single person would take over 10 years.
Shelter says that 2 people earning average wages would need to put aside a fifth of their income each month (after their living costs) for 6 and a half years in order to make a 20% deposit on the average home costing £140,000.
(Felix, survey covered England only but prices are likely to be similar here. These are ‘outside London’ prices – London figures given were much higher)
The situation is even more difficult for a young couple with a child. Shelter discovered that they would only be able to put aside £54 a month, rather than the £290 that a childless couple could afford. Having a child pushes the average savings time for a house deposit to just under 12 (11.8) years.
Shelter Chief Executive Campbell Robb said:
‘These shocking results show that when it comes to saving up for a home of your own, things today just aren’t what they used to be. The Government has to start meeting people halfway.
‘Unless we see radical action to tackle our chronic shortage of affordable homes, the next generation of young people will find it even harder to find a place to call their own.’
(Photo © Bernard Ward www.DerryPhotos.com)