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
Prospective first-time buyers buying alone will take nearly 15 years to raise enough for a 20% deposit, according to a research.
According to Norton Finance, which looked at average house prices and salaries, a prospective FTB putting away at least 12% of their salary – nearly £292 per month – over 15 years would raise a deposit of 20%.
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 FTBs are teaming up to get onto the property ladder.
The Halifax research further said that FTBs put down an average deposit of £53,414 in 2023, £21,000 more than 10 years back.
Norton Finance said that the government’s Lifetime ISA scheme could be helpful for those aged between 18 and 40 years, as it would add a 25% bonus to a person’s savings, up to a maximum of £1,000 per year.
Paul Stringer, director of Norton Finance, noted: The decision to pursue homeownership is a significant financial undertaking, and our research aims to provide potential homeowners with the knowledge to make informed choices that align with their financial goals.
He added: While owning property can be an ultimate dream for many, it is necessary 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.