British first-time buyers fear they won't get on the property ladder until they are 40 - and a third have given up trying

Published 20th May 2011

Britons do not think they will be able to afford to buy their first home until they are nearly 40 while nearly one third have given up trying to get on the property ladder.

And new research shows that first-time buyers are also putting down average deposits of 23 per cent of their home's value, meaning someone buying a £160,000 property would have to save £36,800 for a deposit.

The average person who does not yet own a home expects to have to wait until they are 38 before they can afford to buy, with that figure rising to 43 in London.

A further 31 per cent of people said they did not plan to try to buy a property at all, according to financial website moneysupermarket.com.

Website spokesman Clare Francis said: 'The housing market has been hugely affected by the credit crunch and economic downturn, and first-time buyers have been hit the hardest.

'It's easy to see why nearly a third of non-homeowners do not intend to step foot on the property ladder.

'House prices may have fallen in many areas but they are still high. This, coupled with the need for such a high cash deposit is pushing many people out of the market.'

Figures out this week show that the average price of a house in the UK rose in March to £205,565, slightly lower than it started the year, after prices fell by 1.4 per cent in January and remained unchanged in February.

The current pattern of house prices rising in some months and falling in others is typical of a market that is trading sideways, with low transaction volumes.

Housing Minister Grant Shapps said he recognised the 'huge difficulties' first time buyers often face due to the lack of large deposits.

He added that £500million had been made available over the next two years for deposits on new build homes as part of the government's Firstbuy Scheme.

It is hoped this will help 10,000 people to get a foot one the property ladder.

One in five people who are not yet homeowners plan to rent until they have saved a deposit. Around six per cent of those questioned said they hoped house prices would drop further so that they could buy their own place sooner, and four per cent plan to ask for help from family and friends.

Meanwhile, separate research from Spanish bank Santander found that first-time buyers have put down average deposits of 17 per cent during the past 12 years, and it typically took them 29 months to accumulate the money.

Around 48 per cent of people said they saved for their deposit, while eight per cent used an inheritance and six per cent were given the money by their parents.

A further five per cent of people took on additional work in order to raise the cash they needed and four per cent borrowed the sum through a loan.

Source: ' ThisIsMoney '

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