It would take workers on a wage of £20,000 two years to save a 15% mortgage deposit on the average new build home, new home specialists Stone Real Estate has found.
This is higher in London, where it would require someone on a £20,000 salary to work for 1,604 days or until 23 May 2024 to earn the required deposit of £75,334.
Michael Stone, founder and chief executive at Stone Real Estate, said: “For many aspirational homebuyers across the UK and particularly in London, the financial hurdle of compiling that all-important mortgage deposit is huge and it can take them years of saving in order to get to that point.
“Of course, life makes it impossible to save 100% of our income and while it may take you even longer tucking away 20% of your net income, doing so will soon provide you with a very firm foundation and luckily for most of us, the Bank of Mum and Dad will help to reduce the time it takes to get a foot on the ladder considerably.
“The silver lining of this long savings slog? Yes the initial hurdle is high, but the reward is one of the most fulfilling in adult life and when buying a new home you’re not only getting great value for money, but your investment will require little to no maintenance for the foreseeable.
“Not only this but a new home will hold its value much better than an existing property and even during periods of market uncertainty as we’ve seen recently, new home buyers have enjoyed robust price growth and a great return on their hard-fought investment.”
For those earning £50,000 a year, it would still have to work until 4 March next year (428 days) or 3 January 2022 in the capital.
From £70,000 a year and above, workers are on track to save the average new build deposit before 2020, taking 241 days on a £100,000 salary and just 58 for those earning £500,000.
In London, you need to be earning £200,000 to make the cut by August of this year (235 days), whilst £500,000 would see the sum reached in just 100 days.
For those on a wage of £1.2m or above, the sum of £43,975 just takes 26 days to save.