According to Norton Finance, which looked at average house prices and salaries, a prospective first-time buyer putting away at least 12 per cent of their salary – around £292 per month – over 15 years would raise a deposit of 20 per cent.
This is based on the average price for a two-bedroom flat of £263,000 and an average salary of £34,963.
For two people looking for a joint mortgage on a property and savings, the amount of time needed to save for a deposit would halve to seven-and-a-half years, meaning they could buy by 2031.
This echoes research from Halifax that showed that two thirds of first-time buyers are teaming up to get onto the property ladder.
The Halifax research added that first-time buyers put down an average deposit of £53,414 last year, £21,000 more than 10 years ago.
Norton Finance said that the government’s Lifetime ISA scheme could be helpful for those aged between 18 and 40 years old, as it would add a 25 per cent bonus to a person’s savings, up to a maximum of £1,000 per year.
Paul Stringer, director of Norton Finance, said: “The decision to pursue homeownership is a significant financial undertaking, and our research aims to provide aspiring homeowners with the knowledge to make informed choices that align with their financial goals.
“While owning property can be an ultimate dream for many, it is essential to start considering these options as early as possible and to have knowledge of the different options available that can support with saving a deposit.”
Research from Yorkshire Building Society suggested that first-time buyers had dropped to a 10-year low of 290,000 in 2023, but a separate report from Skipton Building Society suggested that they made up over a quarter of the housing market.
A report from the Institute of Fiscal Studies revealed that almost half of first-time buyers in the UK needed family help to buy a property between 2018 and 2020, showing the challenges around saving for a deposit.
