Research by the wealth management platform Moneybox has revealed that it is taking longer for first-time buyers to afford a new home.
Due to rising house prices, it now takes an average of nine months longer to save for a deposit.
Data from the Office for National Statistics (ONS) shows that a first-time buyer on an average UK salary who started saving 20% of their take-home pay in 2021 would have planned to have enough for a 10% deposit by 2025. However, as the cost of an average house has risen from £228,000 in 2021 to £265,250 in 2025, they would need an extra £3,541, which would take an additional nine months to achieve.
Moneybox calls this the “moving finish line”, as rising property prices push home ownership further into the future. Those earning less than the average UK salary take longer to save for a deposit. The time taken to have enough for a deposit is also affected by fluctuating interest rates on savings accounts.
Analysis by Moneybox reveals that in 2023, the average monthly amount saved towards a deposit was £344, which has now increased to £475. Saving at this rate means that first-time homebuyers should expect to have enough for a deposit within about four and a half years.
If you have managed to save enough to buy your first home, ask us at Merseyside Movers & Storers, the top Merseyside removal company, for a no-hidden-fees quote for transporting your belongings to your new home.
