Prospective first-time buyers are saving a median of around £250 a month for a deposit on their first property, according to a Lloyds Bank report, which showed a second consecutive monthly fall in sentiment towards consumers’ financial situation.
Despite first-time buyers saving up £250 each month, many still say their spending on less essential items remains the same.
Almost half (48 per cent) spend the same amount on going out or treating themselves, while 48 per cent again said that they spent the same amount on clothes, despite the need to save for a deposit
The research, conducted with 2,070 adults, showed the stark contrast in levels of sentiment between those that own their property versus those that are renting.
Perceptions of the housing market showed that 51 per cent of homeowners feel good about its prospects, compared to just 33 per cent of renters in August, who may be looking to get on the ladder.
This trend is carried across into other measures, such as the country’s financial situation (50 per cent of homeowners feel good, versus 41 per cent of renters), the country’s employment situation (50 per cent against 38 per cent), and their personal financial situations, where 70 per cent of homeowners feel their personal financial situation is good, compared to just 53 per cent of renters.
Patrick Foley, chief economist at Lloyds Bank, said: “Households remain in a generally positive frame of mind, even though a slightly less upbeat view of the employment situation has developed recently.
“With confidence around prospects for discretionary income remaining relatively firm, this bodes well for the recovery making further progress in the months ahead.”