Property Patter: It’s Getting Harder For First-Time Buyers to Secure a Deposit

Posted on Wednesday, May 18, 2016

Property Patter: It’s Getting Harder For First-Time Buyers to Secure a Deposit

Despite a recent halt in general UK property prices, studies from Hamptons International reveal that the average first-time buyer will have to save for an entire decade to accumulate enough money for a 15% deposit.

Nationwide studies suggest that property prices declined by around 0.2% during May. What's more, annual growth has flattened to 2.4% from a previous 2.6% in April.

That said, the demand for rental properties is still significant due to the inherent challenge of saving for, and securing, a deposit for a mortgage in today’s tough economic climate.

Based on these findings, during the start of 2018, the average single first-time-buyer would have to save for 10 and a half years if they were to raise enough funds for a 15% deposit on their first home. That's a colossal timeframe, to say the least - and of course, in London, you can almost double that to 17 years.

Speaking on the subject, Aneisha Beveridge, A Hampton International analyst explains:

"Saving a deposit is still the biggest barrier to buying a first home. It takes a single person more than a decade to save up in the current climate."

With this in mind, for the savvy North Staffordshire landlord, preparing your home a long-term let and transforming it into a welcoming home rather than a temporary dwelling is the key to success.

Due to current home-buying barriers, more single professionals and families in and around the area are looking for a top quality home that will suit their needs on a long-term basis. If you appeal to this demographic, you are likely to entice a tenant that will cause minimal issues, treat your property with the utmost respect and always pays their rent on time - a winning combination, indeed.

If you need the right local property manager to help market your place to the right long-term tenants, we’ll be more than happy to help - and for niche advice on how to get your property shipshape and shiny to attract potential new occupiers, read our tip-top list of cost-effective home renovation tips for landlords.