According to new research produced by the Post Office, most young people in the UK expect to be 35 years old by the time they can afford to purchase their first property. The age expectancy has been rising steadily since the 1960s, when the average age for first property ownership was just 24.
The research produced a number of interest findings, including:
- Nearly one in three respondents said they can’t currently afford a deposit
- One in five said that a return of the recently abolished first time buyer stamp duty exemption holiday would help them to get on the property ladder
- Some 47% of respondents said that it would take them 10 years or more to save for a deposit for their first home
- Prospective buyers living in the South East and the South West experience the most difficulty with raising a deposit, with 65% and 56% respectively saying it would take over 10 years to raise the funds
- Some 47% of Londoners said it would take more than 10 years for them to save enough to be able to buy a first home in the capital city
- Some 29% said they would be more enthusiastic about buying a property if they were offered government assistance
- Getting married of having a baby were identified as the main reasons for renters to buy their first home.
Scotland is the exception to the 30-something rule, with most young people citing 40 as the age at which they can realistically expect to buy a first home.
John Wilcock, head of Post Office Mortgages, said: “The average age of a first time buyer has been creeping up over the past 50 years and a perceived 10-year wait to raise a deposit doesn’t help matters. The sheer size of the deposit is the most daunting thing for would-be first time buyers, but it appears to be worth the wait if it works out cheaper than renting.
However, there are a number of competitive mortgage options for people keen to buy their own home, and prospective buyers don’t have to wait until they’re 35 to get a foot on the ladder. Since the beginning of the year, 27% of Post Office mortgage customers have been first time buyers compared to industry figures of 18%. On average, Post Office mortgage customers are 31 years old, suggesting some people may be able to afford to buy a home sooner than they think.”
Source: Property Wire.