Date Published 27 April 2012
An optimistic one in eight prospective first-time buyers say they are hoping to purchase in the next five years, according to research from the Post Office.
Of those who plan to buy their first home within the next five years, almost a quarter hope to achieve this in 2013 with one in seven (14%) expecting to buy in 2012.
The research also reveals the first-time buyers who want to buy and need to raise a deposit, expect to save an average deposit of 16%.
Post Office`s own customer data confirms this, with first-time buyers in 2011 putting down more than 15% on average.
Mike Cook, Head of Mortgages at Post Office, said: "First-time buyers are the life blood of the property market and our research shows that challenging stories about first time buyers and wider economic issues have not dampened aspirations to get on the housing ladder.
"It is also interesting to see that despite the resurgence of 10% deposit mortgages recently, the average first-time buyer is aiming for the cheaper rates available at 15 or 20% deposit - even if it takes that bit longer to save."
Almost half of first-time buyers (45%) say they are confident they can fund the deposit by themselves. The rest are using a variety of ways to build the deposit, including one in ten that are planning to use money from an inheritance.
Cook said: "With the end of stamp duty exemption for homes costing below £250,000, first-time buyers will now have to find the money for stamp duty as well as their deposit. It appears that for the majority of would-be buyers the good old savings account comes to the rescue with the rest receiving a helping hand from family and the Government."