Five year wait for first-time buyers

Permalink: Five year wait for first-time buyers
by Kay Murchie

According to Stroud & Swindon Building Society, the time required by first-time buyers to save to purchase their first property increased by 11 months during 2006 – to nearly 5 years.

The building society established that first time buyers in the UK had to build up an average of nearly £10,000 for a 5% deposit, stamp duty and legal fees, compared with £7,500 in 2005.

However, these figures do vary regionally, for example, buyers in London are faced with a 7½ years wait to save approximately £20,000. The long wait is despite them having the highest income among first-time buyers at an average of £53,473, although at more than £250,000 their first home is also the most expensive in the country and pushes them into the 3% stamp duty bracket.

However, first-time buyers in the East and West Midlands and South East and South West have all noted the average length of time they need to save drop by one month.

A spokesperson for Stroud & Swindon commented that this discovery is very worrying for first-time buyers, Britons are putting their lives on hold due to the debt they are in.