First-time buyers are being forced to save up to 10 years for a deposit as many youngsters continue to struggle to get on the housing ladder.
Seven in 10 (69 per cent) first-time buyers said it took more than two years to build their home deposit and a quarter (23 per cent) had to save for 5 to 10 years, according to Which? Mortgage Advisers research.
The ‘Bank of Mum and Dad’ continues to play a central role in the property market, as three in 10 (29 per cent) were supported by contributions from their parents and a further 8 per cent were given financial help by other family members.
The research was based on a 2017 survey of more than 1,000 first-time buyers by Which? Mortgage Advisers, which has launched a new interactive tool to allow people to calculate how long they will need to save up for their home.
David Blake, principal mortgage adviser at Which? Mortgage Advisers, said: “Our research reveals the real difficulty that first-time buyers have in saving enough money for a deposit.
“Given how hard it can be to get onto the property ladder, ensuring you have the right mortgage could not be more important.
"Seeking independent mortgage advice early on is vital in order to know what options are open to you.”
Ian Ward, managing director of Wirrall-based The Mortgage Partnership, agreed more first-time buyers are having to rely on the Bank of Mum and Dad.
He said: “The problem is not that they want to have help from family, it is the fact that property prices have risen so fast that the corresponding deposit rises as well and they can’t keep up.
"For many, it is like running to stand still and not reaching their deposit goal.
“Clearly, the desire to own property is as strong as ever, even with house price inflation. There is no doubt that increasing housing supply would help to slow the relentless rise in prices and would definitely awaken interest from a generation that thought they had to settle for renting in the long term.”
Dale Jannels, managing director at Horsham-based All Types of Mortgages, pointed out the time it takes to save for a deposit depends on the area in question where people want to purchase.
“For people in the south it can take 10 years, but in the north it is a bit lower,” he explained.
“The Bank of Grandma is being used even more now as the Bank of Mum and Dad begins to dry up.
“We need to look at the bigger picture and make lending more affordable – affordability is a massive part of it.”