First-time buyers must save for an average of more than eight years to afford a mortgage deposit, research claims.
Commercial broker ABC Finance has analysed how long first-time buyers would have to save the recommended 20% of their salary to afford a 20% deposit across UK regions.
The estimate assumes no interest is earned on the money and is based on Nationwide house price data and an average millennial salary of £25,920.
It would take eight years and four months to afford a deposit on the average UK property worth £214,178, and 15 years and 11 months in London where typical values are at £411,760, the research claims.
The UK’s most affordable place is the north east, where it would take just five years to save for the deposit on a £125,813 property, according to ABC Finance.
| Region | Average Monthly Rent By Region (Q4 2018) | Rent As % Of Average Millennial Wage | Average House Price (Q4 2018) | Average Deposit (Q4 2018) | Time Taken To Save Deposit (Average Millennial Wage) [Based on standard advice of 20% wage saving per month] 1 Person |
Time Taken To Save Deposit (Average Millennial Wage) [Based on standard advice of 20% wage saving per month] 2 People |
| UK Average | £786 | 36% | £214,178 | £42,836 | 8 Years, 4 Months | 4 years, 2 Months |
| North east | £515 | 24% | £125,813 | £25,163 | 4 Years, 11 Months | 2 Years, 6 Months |
| North west | £697 | 32% | £160,984 | £32,197 | 6 Years, 3 Months | 3 Years, 2 Months |
| Yorkshire & Humberside | £631 | 29% | £157,436 | £31,487 | 6 Years, 1 Month | 3 Years, 1 Month |
| East Midlands | £628 | 29% | £184,283 | £36,857 | 7 Years, 2 Months | 3 Years, 7 Months |
| West Midlands | £693 | 32% | £188,163 | £37,633 | 7 Years, 4 Months | 3 Years, 8 Months |
| East of England | £908 | 42% | £228,014 | £45,603 | 8 Years, 10 Months | 4 Years, 5 Months |
| South east | £1,010 | 47% | £277,117 | £55,423 | 10 Years, 9 Months | 5 Years, 5 Months |
| South west | £811 | 38% | £244,304 | £48,861 | 9 Years, 6 Months | 4 Years, 9 Months |
| Greater London | £1,619 | 75% | £411,760 | £82,352 | 15 Years, 11 Months | 8 Years |
| Scotland | £647 | 30% | £147,856 | £29,571 | 5 Years, 9 Months | 2 Years, 11 Months |
| Wales | £614 | 28% | £156,891 | £31,378 | 6 Years, 1 Month | 3 Years, 1 Month |
| Northern Ireland | £653 | 30% | £139,599 | £27,920 | 5 Years, 5 Months | 2 Years, 9 Months |
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