FTBs could need an extra £24,000 to buy in 2030, Coventry BS reveals
The average FTB property could rise to £269,377 by the end of the decade, meaning buyers would need an extra £23,862 to purchase an average first home.
First-time buyers (FTBs) in England could need almost £24,000 more to purchase a home by 2030, analysis from Coventry Building Society found.
Based on Office for Budget Responsibility (OBR) forecasts, the average FTB property could rise from £245,515 to £269,377 by the end of the decade.
This would leave buyers needing an extra £23,862 to purchase an average first home.
A buyer putting down a 10% deposit would need another £2,386 upfront, equal to saving an extra £56 a month until 2030.
Higher prices could also push more FTB homes above the £300,000 threshold for first-time buyer Stamp Duty relief.
County Durham was the most affordable area covered by the analysis.
Its average FTB property is projected to rise from £132,748 to £145,650 by 2030.
Buyers there would need to save about £30 more a month to maintain a 10% deposit.
Surrey was the least affordable county, with its average FTB property expected to rise from £382,334 to £419,494.
Buyers would need to save an extra £88 a month for a 10% deposit.
In Greater London the average price is projected to increase from £496,302 to £544,539.
This would require an extra £114 in monthly savings to maintain a 10% deposit.
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “For first time buyers, the deposit challenge is a moving target.
“People are not just saving for the price of a home today, they are trying to keep pace with where prices could be by the time they are ready to buy.
“Even modest annual increases can add up over several years, meaning buyers may find their goal has shifted significantly.”
Stinton added: “Starting to save early can make a real difference.
“These projections aren’t about putting people off buying a home but highlighting the importance of planning ahead and understanding how much you may need by the time you’re ready to take that step.
“Buying a first home remains a major milestone for many people and understanding how your target could change over time is an important part of preparing for that journey.”
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