Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

Solo First-Time Buyers Face Nearly a Decade of Saving for Deposit

Solo first-time buyers in England need to save for nine years and five months to afford a 10% deposit and upfront buying costs, according to new research by reallymoving. The study highlights the significant financial challenge for individuals aiming to get on the property ladder without support.

The research shows that to purchase a property at the current average first-time buyer price of £250,000, a solo buyer must save £25,000 for a 10% deposit, plus £1,421 for conveyancing, £462 for a survey, and £432 for removals. This brings the total upfront cost to £27,315. Based on saving 10% of their take-home pay each month, it would take 113 months to reach this amount.

Over half of first-time buyers in the past year (53%) purchased a three-bedroom property or larger. The average age of first-time buyers has risen to 34, reflecting changing needs such as accommodating growing families. The high cost of moving is cited as a factor encouraging buyers to skip smaller starter homes and opt for larger properties to reduce the number of moves.

Those able to buy with another person can halve their saving time to four years and eight months, assuming both earn the national average wage. Regional differences are also significant: first-time buyers in London face saving for 13 years to raise the £47,692 needed, while those in the North East need six years and seven months to save £16,763. On average, buyers in the South of England need to save for three years and four months longer than those in the North.

The government has announced plans to replace the Lifetime ISA with a new First Time Buyer ISA in 2028, which will have no upper age limit. Until then, individuals aged 18 to 39 can continue to open and save into a Lifetime ISA.

These findings are relevant for letting agents and inventory clerks, as they reflect ongoing challenges for first-time buyers and may influence demand for rental properties and larger homes.