Investing in a home can be one of the most significant financial steps you will ever take, but for many first time buyers it's becoming increasingly difficult. While house prices remain forbiddingly high for many of us, deposits are on the rise too.
Recently released data suggests that mortgage deposits are on average almost £66,000, that's ten times more than the average of 20 years ago, and average income rises across the same time period are simply not keeping up.
With many potential buyers living in rented accommodation, the problem is further exaggerated by rising rent levels (up 4.2% in the last year). Many first time buyers are having to wait much longer or are simply not able to get onto the property ladder in the first place.
So as first time buyers how can we get a foot in the door of the property market and get our hands on that much sought after first home? The answer of course is that we need to save more, and the sooner we start the better. Even if the target seems like it's a long way off, every penny will count.
Saving can be hard, especially in tough economic times, but it is worth looking at areas where you could spend less and save more. First time buyers will also need to budget for one-off payments required such as Stamp Duty Land Tax and lenders fees. To help you to save, some of the things you might consider are:
The housing market is becoming extremely difficult to get into, but careful financial management, and better financial planning for the future may help provide hope for first time buyers.