A survey of 2,000 adults conducted by Aldermore found that future homeowners were delaying their plans by 20 months on average.
Almost three-quarters (72 per cent) of respondents said rising living costs had become a barrier to a potential purchase.
Respondents reported finding various ways to cope with increased costs, with 64 per cent cutting back on their regular savings. However, this will likely further impact their ability to get on the property ladder. A fifth said they had started to look for a cheaper home.
Deposits in the rise
The average deposit for a first-time buyer is £43,500, rising to £52,777 and £54,570 for buyers in London and the South East respectively.
On the lower end of the scale, first-time buyers in Yorkshire are expected to raise £27,379 on average.
Just over half of the respondents said they were using a savings account with higher interest rates to save for a deposit. However, 44 per cent are not making use of the potential benefits some banks have to offer and are holding their money in current accounts. Further, eight per cent are relying on cryptocurrency to build a deposit.
Jon Cooper, head of mortgage distribution at Aldermore said: “While saving in this current economic climate may feel like a long and arduous journey, we’ve found that the majority of determined first-time buyers think the difficulties are ultimately worth it in order to get on the property ladder.
“It’s important that prospective buyers are aware of the support available to them. Would-be buyers should consider seeking advice from a broker who can lend a helping hand and guide you through the process of becoming a homeowner.”
