Some FTBs save for their deposit for almost a decade

Michael Lloyd

January 16, 2020

tenancy deposit

In the least affordable cities in England it can take first-time buyers with no previous savings over nine years to save for a 10% deposit, digital wealth manager Nutmeg has found.

In London and Guildford it takes over nine years to save for this deposit.

This was followed by Cambridge, Winchester and Oxford where it would take over 8 years on average to get on the property ladder.

Lisa Caplan, head of financial advice at Nutmeg, said: “Many people dream of owning their first home, and we know that a house is the top investment goal for Nutmeg customers, but it can seem unachievable.

“However, by putting some money away each month and making the most of a government top-up available through a Lifetime ISA – your aspirations for home ownership might be closer than you think.”

From April 2017, people between 18 and 39 have been able to open a Lifetime ISA and contribute up to £4,000 each tax year.

The government will then provide a 25% bonus on these contributions.

Lifetime ISAs can be used toward the purchase of a first home or accessed in retirement.

Nutmeg, which offers a stocks and shares Lifetime ISA, has over 16,000 Lifetime ISA customers.

Some of the more affordable cities include Leicester, Manchester and Sheffield, where it takes an average of 3.5 years.

Hereford, St. Ives and Luton are the places that equal the overall average, where an individual first-time buyer will take 4.8 years to put away enough money for a 10% deposit.

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