First-time buyers could be waiting nine years to buy their first home, research by Yorkshire Building Society shows.
More than a third (34%) of UK adults aged 18-34 see owning their own home as the most important life event they will save for.
With three in five of them (61%) expecting to own their own home within four years of starting to save for a deposit and with the average UK house price standing at £246,244 prospective buyers would need to save a 5% deposit of at least £12,312 on average to make their home-owning dreams a reality.
However, according to the research, the average amount currently saved by those aged 18-34 is £114 per month, which the Society estimates would take an aspiring homeowner nine years – more than double their expectation – to amass a savings pot big enough to cover the average 5% deposit needed to get on the housing ladder.
This timeline increases to 18 years if wannabe homeowners are aiming for a 10% deposit, highlighting the disparity between expectation and reality for many potential buyers.
The data also shines a light on regrets that Brits have over their spending habits, which the Society said could be the difference between getting the keys to a new property sooner rather than later.
Almost two thirds (63%) of those surveyed say they regret spending on impulse purchases and wish they had saved the money instead, with an average of £164 spent on a whim each month.
If that extra £164 a month was combined with the average monthly savings by those aged 18-34 of £114, they could save for a 5% deposit within their expected four-year timescale.
Ben Merritt, senior mortgage manager at Yorkshire Building Society, said: “As our research shows, buying a first home quite clearly remains a life ambition for many people but achieving that remains a struggle, particularly for first-time buyers. The reality of having to save for nearly a decade is a stark reminder that the upfront costs of purchasing a house still prove too big a barrier to overcome for some.
“As a mutual organisation, we are owned by our members and not shareholders. For us, our aim is helping real life happen for our members, it’s about helping them to achieve their personal goals and key life moments such as buying their first homes.
“After almost a full year of staying at home with less opportunities to spend and more cosy nights in, we are reminding people to consider the financial cost of impulse spending. We’re not trying to deny life’s pleasures, we just want to help people save money that would enable them to be able to reach their home owning aspirations sooner.”
The research was commissioned on the back of a new campaign launched by the Society to highlight real life stories from its members showing how the mutual supports them to make real life moments happen.
