One in four potential first time buyers believe it will take 10 years to raise enough money to afford a house deposit, according to a survey conducted by the Building Society Association.
A third of those surveyed also feel 2013 will make saving for a deposit harder as the cost of living and rent increases. As a result, only 23% of those intending to buy thought they would do so in 2013, with majority expecting to rent or be living with family and friends.
Moreover, only 26% of first time buyers think they will have a deposit ready within three years, compared to 69% in 2008. This is mainly caused by the average house price being six times higher than the average salary, making it difficult to obtain a mortgage for first time buyers, even those looking for a professional mortgage.
According to Paul Broadhead, head of mortgage policy at the BSA, getting on the housing market is hard for those coming into the market. However he states that it is a “complete myth” that all first time buyers are struggling to obtain a mortgage. From January to October 2012, 22,000 first time buyers were helped onto the housing market by lenders. Moreover, one in three mortgages approved went to those new to the market.
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