Whilst first time buyers looking for a contractor mortgage have not yet fared quite as badly as the Dodo, in some parts of the UK they are increasingly becoming an endangered species.
According to a recent report, the East Midlands is one of the worst regions for first time buyers hoping to buy a home. Prospects for the next 12 months do not look good and the average UK earner would need to save for more than ten years to have enough money for a deposit. In the East Midlands, the average is 15 years.
A survey by InvestorBee discovered that a lot of first time buyers in the East Midlands don’t seem to grasp the reality of the situation. 27% of those who are saving for a deposit hope to buy a property this year, and 29% expect to be in their own home within two years. None of the survey’s respondents said they would save for longer than ten years in order to secure a deposit.
The average salary of a first time buyer in the East Midlands is £23,431. Even if they saved 9.3% of their income, it would take 15.6 years to save enough for a 20% deposit. House prices in the region currently average £169,411.
December’s first time buyer forecast from Rightmove suggested that only 18.4% of purchasers in the East Midlands this year will be first timers. The national average is 23% and puts the East Midlands in second last place. The South West has the lowest percentage of prospective first time buyers.
Rightmove’s survey also discovered that the average age for a first time buyer in England and Wales this year will be 32.
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