Saving for a deposit among first-time buyers

WANNABE first-time buyers of their own flat or house are expected to have to save for around six-and-a-half years in Edinburgh and seven-and-a-half years in Glasgow before they are successful in building up a sufficient deposit to secure their dream property.

The findings follow research published by online mortgage brokers, Trussle, by comparing property price data based on a survey of 2,000 first-time buyers and average income information from the Office of National Statistics. It is then assumed that first-time buyers are setting aside a fifth of their income each month towards a 20 per cent deposit.

The calculation for Edinburgh is based on an average first-time buyer property being £157,700 and an average annual income of £23,400.

Meanwhile, for Glasgow, the calculation is based on an average first-time buyer property being £130,800 and an average annual income of £17,200.

Trussle has produced an online map (here), which provides calculations for various cities around the UK, and an accompanying media release penned from the perspective of first-time buyers staying at the ‘Hotel of mum and dad’.

Source: ‘First-time buyers are checking into the ‘Hotel of mum and dad’ to save for house deposits’, November 25 2020.