£20k to get on the ladder

First-time buyers are expecting to rent for the foreseeable future as the average amount of savings required to get on the property ladder reaches almost £20,000, according to Co-operative Financial Services.

Would-be homeowners expect to have to save £19,100 before being able to get a mortgage on their first home, the Co-op states.

Its research shows that more than half of those surveyed thought renting was a waste of money, but the majority of first-time buyers felt they would be waiting at least two years before buying their dream home.

And the financial services provider claims 57 per cent of buyers will not make sacrifices to ensure they get a foot on the property ladder.

Victoria Drummond, operations manager for Ownhome, said: "This new research shows that the dream of owning a home is now out of reach for many first-time buyers, as they struggle to save for a deposit."

Meanwhile, investors looking to pick a cheap repossessed property from an auction are finding it more difficult as prices have increased during the last year, reports the Telegraph.

back