13 Nov, 2019/ by Homeward Legal /First Time Buyer
First-time buyers are taking less time to save for a home deposit.
New research by Post Office Money says first-time buyer households save an average £843 per month for a deposit. That's a fifth (21 percent) of the total household income of an FTB household (£49,263).
Boosting income
The amount saved varies across the country. First-time buyers in Scotland save an average £682 but, reflecting much higher property prices further south, those in London are putting away £1,046 every month.
Only a third (29 percent) of first-time buyers save on their own for a home. One in three told researchers they work overtime to boost their savings, and 14 percent take on a second job to save for a deposit.
Average saving time falls
Post Office Money quizzed more than 1,000 people who had become homeowners for the first time in the last two years.
The newcomers to property ownership were asked how long it had taken to save for a deposit. And the results revealed that it takes an average 3.6 years to get the deposit together, compared to 3.8 years reported last year.
Bank of Mum and Dad helps home deposit
The speeding up of the deposit process is likely related to the help many FTBs now receive from family and friends to boost their savings.
One in five (20 percent) save with a partner; 15 percent get a loan from parents, known as the Bank of Mum and Dad; and 12 percent use an inheritance.
Generous contributions
Ross Hunter, of Post Office Money, said: "Our study shows the FTB saving journey is taking less time, often due to generous financial contributions from loved ones who help to speed up the process.
"However, it's clear that aspiring homeowners are still putting away large sums of money on a monthly basis. They are also exploring an array of ways to bring in extra income."
Post Office Money has a first-time buyers tool that identifies the most affordable local areas. The tool also works out how long it will take them to save for a deposit.