Four year wait to buy first home

It is now taking an average of just under four years for first time buyers to save up for a five per cent house deposit.

12:24 03 June 2004

It is now taking an average of just under four years for first time buyers to save up for a five per cent house deposit.

Research commissioned by financial group National Savings and Investments has shown that it now takes a year longer to save the money than it did ten years ago.

National Savings and Investments marketing director Gill Cattanach said: "The growing gap between increases in house prices and incomes means that those thinking about buying homes for the first time need to start saving earlier."

Over the past decade average pay has increased by 68 per cent, while house prices have swelled by 142 per cent.

"It is not surprising that many potential buyers are feeling compelled to take out even larger 100 per cent mortgages or self-cert mortgages, which are typically much more expensive than standard ones," said John Wriglesworth, analyst for property firm Hometrack.

"Some first-time buyers are even taking out unsecured loans in order to afford a deposit."