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17 December 2012

Deposits continue to thwart first-time buyers

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by Gill Montia

Deposits continue to thwart first-time buyers

More than one in four potential first-time buyers say it will take them ten years or more to raise a deposit, while just over a quarter are hopeful of accumulating enough cash to secure their first home in three years or less.

According to the Building Societies Association (BSA), deposits remain a major issue for first-time buyers despite access to mortgage finance having eased.

Amongst those planning to buy for the first time, only 23% thought they would be living in a property of their own by the end of 2013 whereas 73% expect to be continuing to rent, or live with family or friends.

Meanwhile, figures backed by 2011 Census data show that UK owner occupation fell from 14.7 million to 14.5 million households between 2007 and 2011.

Commenting, BSA head of mortgage policy, Paul Broadhead, says: “Buyers and lenders alike are adjusting to a new kind of normal in the UK housing market and the headwinds generated by a weak economic environment mean that it is here to stay right now.”

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