According to a report from Alliance and Leicester (A&L), first time buyers (FTBs) are not saving enough when looking to buy a house.
On average, FTBs say they want to save a deposit of around eight per cent of the value, approximately £11,700 for the average price of a first property (£135,000).
However, the findings of A&L show that most respondents plan to save just £270 per month for two years, which equates to a deposit saving of around £6,500 and a £5,000 shortfall on their target.
"There is a clear mismatch between how much, and for how long, first time buyers are willing to save and their ideal target deposit to buy their first property," said Richard Taylor, head of mortgages at A&L.
"With the average first time buyer house priced at just over £135,000, the deposit of over £11,000 that first time buyers want equates to about eight per cent, which would give them a sizeable slice of equity in their first home.
Mr Taylor advised FTBs to plan ahead and "budget carefully, trying to cut back on luxury expenditure" which would help them to make the sizeable jump into property ownership.To read more about property, click here.
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