Legal News
Millions of Families Struggle to Raise Deposit for a House (12 December 2011)
Date: 12/12/2011
Millions of families must save for 30 years or greater to raise the money required to put a deposit on a house, a new study has revealed. The report has highlighted the impact of high house prices and the request for considerable deposits on cash-strapped UK families. In 1993, the average family would have been required to save their cash for around eight years in order to save enough to meet the cost of a deposit. Today, it has been calculated that the average family would have to save for just over 30 years. It is therefore unsurprising that many prospective homeowners feel that they have little or no chance of entering onto the property ladder, claims the Resolution Foundation.
A report by the Resolution Foundation highlights the many families who are being forced to rent a property and are paying such extortionate costs for their rent that they are left with little cash to put towards a deposit. Rents in the UK have increased to an all-time high, with the up-front costs for renting a one-bedroom flat totalling over £2,000.
David Miles, one of the Bank of England’s leading members, claimed that many youngsters were unlikely to be able to buy a house until they reached the age of 44 years. Paul Smee, the Council of Mortgage Lenders’ director general, recently stated that many people were spending far longer in rented accommodation than they ever would have imagined. Housing Minister, Grant Shapps, meanwhile, has vowed to help those who wish to purchase a property.
Duncan Lewis’ conveyancing solicitors can provide essential advice to prospective first-time homebuyers.