Six years wait for first time buyers

22 March 2004
A new survey has found that first time buyers are waiting as much as six years to enter the property market.

A quarter of first time buyers take four to six years to buy their first home, a new report has found.

Bradford & Bingley, who conducted the research, also say that those stepping onto the property ladder are becoming older.

The first time buyer report found that half of people are seeing prices rise quicker than savings, and people are increasingly likely to ask for financial help from friends or family.

Additionally 50 per cent of those who do invest in property are paying debts at the same time as trying to raise a deposit.

71 per cent of those questioned have less than £11,000 saved, and the average cost of a home for first time buyers is £93,925.

One-third of the 1,214 people questioned hope to spend between £95,000 and £145,000 on their first home, and 16% will spend between £145,000 and £195,000.

David Bitner, from Bradford & Bingley's Marketplace financial advisory service said the roots of the problem are rising house prices and a "buy now, pay later" culture leaving consumers with more debts than savings.

He said: "For every year they keep saving, property prices are rising that bit higher. With such a Catch-22 situation it's not surprising many have had to hold off buying."

36 per cent of those buying their first home are over 30, and 17 per cent are older than 35 the survey found.

At the same time 22 per cent have lost hope with the idea of saving, and are pin their hopes on a 100 per cent mortgage.