Housebuyers are six times more likely to struggle to find deposits than parents’ generations
A third of people preparing to buy their first house are six times more likely to struggle to save for their deposit than those buying 20-30 years ago, self-storage company, Space Station, has found.
While one in three people (33%) currently saving for a home said they had been forced to delay by the challenge of saving a deposit, only one in 20 people (5%) who bought their first home between 1988 and 1998 reported the same struggle.
Vlatka Lake, marketing manager at Space Station, said: “We help a lot of Brits with their house move when they require storage, so we know all too well about the struggles and sacrifices people have to make in order to buy their first home.
“As the prices of houses shoot up, it’s not surprising to see so many people renting or living with their parents and struggling to save a deposit.
“It just shows how attitudes to buying a house have really changed over the years and how hard it is for first time buyers today.”
House prices have increased far above the rate of inflation over the last 30 years. The average house price in 1988 was £45,000, which is equivalent to £117,000 in today’s money.
Yet today, the average house costs just under £210,000 – almost twice the price in real terms.
Although this may have been good for some people already on the housing ladder, it has massively changed first-time buyers’ habits over the years, though not necessarily in the way that might be expected.
As, far from leading to the younger generation downgrading their expectations, it has simply led to them spending longer saving up, perhaps to ensure they make more of a long-term purchase.
Nearly half (42%) of people currently saving to buy a house want their first home to have its own driveway, more than a third (38%) want a large garden and 35% have set their sights on a detached or semi-detached house.
Among people who bought their home 20-30 years ago, only 30% had a driveway, 21% had a large garden and only 29% purchased a detached or semi-detached house over a terraced property.
Only 3% of people who bought houses between 1988 and 1998 said they saved for longer to buy a better property, compared to 24% of people planning to buy a house today.
And while only 7% lived with their parents while they saved for a deposit 20-30 years ago, some 16% now do this.
The most desired features in a first home today is a driveway (42%), large garden (38), three bedrooms or more (38%), semi-detached (35%) and garage (23%).