First-time buyers delaying a property purchase

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by Kay Murchie

Abbey Mortgages has established that 1.1 million first-time buyers are delaying purchasing a home for at least the next 12 months. This is primarily due to the withdrawal of cheap mortgages and the decline in property prices.

However, this group of people are advised to invest their deposit wisely. Those delaying purchasing a home would benefit greatly from moving their deposits into high-interest saving account, according to Abbey. This could help make deposits grow faster than house prices, and leave first-time buyers in a stronger position next year.

Abbey said investing the average deposit of £28,000 would generate around £1,820 in interest over a 12 month period.

This amounts to funds totalling £31 billion and wise investment over the next year could make potential buyers an extra £2 million in interest.

In spite of the concerns over the future of the property market, around 624,000 first-time buyers are still planning to invest in their first home in the next 12 months.