First-time buyers can significantly reduce the time it takes to save for their first home by moving back with their parents, according to new research.
Hampton International’s Time to Save Index has revealed that a single first-time buyer living at home in England and Wales could cut the time it takes to save a 15% deposit by nine years to four years, while a couple would take just 21 months instead of three and a half years.
- See Mortgage help for first-time buyers for help getting onto the property ladder.
Londoners can benefit most from living with their parents because house prices – and deposits – are so much higher. A single buyer could cut the time they have to wait to buy their first home by a whopping 33 years – down from 40 years to seven. Meanwhile, a London couple could cut five years off their deposit-saving time, reducing it to less than three years.
Fionnuala Earley, residential research director at Hamptons International, says: “While slower house price growth and higher wages made affordability a bit better in 2015, first-time buyers still face high barriers to achieving homeownership because of the size of deposit required.
“Being able to buy a home in a reasonable amount of time means they need to find ways to save more of their income. For many, this means moving back home with mum and dad and saving on the largest expense they face – rent. In 2015, the government estimated that around a quarter of people aged 21 to 34 now live with their parents.”