DCSIMG

Homebuyers wait 10 years for a loan

  • by MIA DE GRAAF
 

Nearly two-thirds of aspiring homeowners will need financial support from family members as they face a wait eight times longer than in the mid-1990s to get on the housing ladder, according to a survey.

It now takes an average of eight years to gather the money for a deposit compared with one year in 1995, prompting 60 per cent of Britons to ask their parents for a financial boost, research from Barclays found.

Househunters in London face the longest wait of over ten years, up from 11 months in 1995, whereas those in north west England and Wales face four years and 11 months of saving.

Following London, the buyers with the longest waits are in the South West, at nine years and 11 months, and the West Midlands, at nine years and ten months.

Analysts say the lengthy wait is often the result of miscalculated budgeting as most first-time buyers underestimate how much they have to save, especially in London.

The average deposit required to buy a home is now 20 per cent of the property price compared with 5 per cent in 1995, setting savers back eight years, whereas most first-time buyers wrongly think it is 16 per cent, which would take them just over six years.

 

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