First Time Buyers Expected To Make An Average Saving Of £20k

By Author: Sam Gooch
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The Press Association recently reported that Britain's first time buyers can look at making savings of around £20,000, before climbing onto the property ladder. This figure could continue to rise as house prices fall. Prices dropped in excess of ten percent over the past year alone.

New figures from the Co-operative Bank and Places for People show that most first time buyers will not be thinking about buying properety for at least 2 years, by which time it is hoped the market will have become more stable.

The two year period will also give the buyers opportunity to save up towards a larger deposit allowing them to take full advantage of the better interest rates offered for more substantial deposits. This amount could continue to rise if the cash is saved in a high interest savings account. Confidence in the property market has been severely damaged as a result of the credit crunch, putting many people off buying homes.

The availability of Mortgages has also been significantly restricted, as many ...
... lenders are not able to make enough revenue on the money markets and are therefore cutting many of their attractive deals.

However, the Co-operative Bank found that many people still see property as a dood investment in terms of a long-term asset. 54 percent of those questioned said that through renting property you are simply throwing money away, while 46 percent would be prepared to lower their expectations of what they were looking for in a property, enabling them to get a place on the property ladder.
Furthermore, the number of people that said that they wouldn't make changes to their currrent lifestyles to get the money together to buy a property has fallen from 57 percent to just 9 percent over the last year.

According to the property website Rightmove, the average asking price for a property in England and Wales has dropped by 1 percent to £227,438, during the five weeks to September 13. However, this has eased in comparison to the previous three months, and the annual rate of decline slowed slightly to 3.3%, compared with 4.8% in August.