Deposits 'goalposts' are shifting further away from first-time buyers
The spiralling cost of deposits for first-time buyers is making it far harder to get on to the property ladder.
According to the Independent, the price of deposits has risen by 124 per cent in the last few years. With house prices dipping by ten per cent since 2007, the cost of a deposit has put extra strain on annual incomes.
In 2000, first-time buyers would need to save around 16 per cent of their annual income but that figure now stands at 64 per cent of annual income.
Bob Pannell, head of research for the Council of Mortgage Lenders, told the Independent that mortgage lenders are more "risk-averse", which is directly affecting potential buyers.
"While prices may have recovered, deposits are now stuck at 25 per cent, so the goalposts are shifting ever further away from would-be first-time buyers," he said.
Whilst deposits are becoming more out of reach, people may consider looking for property to rent in the London borough of Hackney, or elsewhere in the capital, rather than buying a home.
By Ben Carter
Published 16th March, 2010
© 2010 Estates IT Limited
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