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Deposits 'more expensive than parent's first home'
The cost of the average deposit on a first home is greater than the total value of their parent's first property, new figures show.
Research by SHIP, the trade body for equity release, found that in 1983, the average first home was £20,810. Since then, not only are properties 558 per cent more expensive at £136,842, a 23 per cent deposit is also £31,474.
It found that the average first-time buyer getting a mortgage without any help from the bank of mum and dad is 37-years-old.
Andy Pratt, chief operating officer at Alexander Hall, said that the instruction to future property owners is to go away and save up for a deposit by tightening their belts or seeking some assistance from family members.
And now could be the moment for these people who have saved up for a deposit.
He said: "The slight drop-off in house prices around the country has just made some of those a little bit more affordable for customers in the market and first-time buyers."
Copyright
Research by SHIP, the trade body for equity release, found that in 1983, the average first home was £20,810. Since then, not only are properties 558 per cent more expensive at £136,842, a 23 per cent deposit is also £31,474.
It found that the average first-time buyer getting a mortgage without any help from the bank of mum and dad is 37-years-old.
Andy Pratt, chief operating officer at Alexander Hall, said that the instruction to future property owners is to go away and save up for a deposit by tightening their belts or seeking some assistance from family members.
And now could be the moment for these people who have saved up for a deposit.
He said: "The slight drop-off in house prices around the country has just made some of those a little bit more affordable for customers in the market and first-time buyers."
Copyright
Published: 14/04/2011
The information in this article was correct at the time of publication and contains time sensitive data and links, it may not be accurate at the time of reading.