First-time buyers' £29,000 deposit
Posted: 29 Aug 2006 12:10:01 GMT
First-time buyers on average have to save up 74 per cent of their annual income to pay for a deposit, according to new research.
An aspiring property owning couple have to fork out around £29,000 to secure a new home which adds to the financial hardship of getting on the housing ladder.
The August interest rate rise and the possibilities of a further base rate hike had already put increased financial pressure on new homeowners.
David Stubbs, an economist for the Royal Institution of Chartered Surveyors (Rics) study, stated: "Unless house building levels improve and levels keep pace with population growth and rising income and wealth, people will continue to find it difficult to access the housing market.
"If the housing market is to become more accessible, lenders must continue to offer generous funding levels and the government should, out of necessity, promote a significant increase in the housing stock."
Rics' figures also show that the average first-time buying couple will have to spend 22 per cent of their average income on mortgage payments.
Overall the current housing market is the least accessible its been for 25 years.
Ten years ago first-time buyers only had to save around 25 per cent of their annual incomes to put down a deposit.