Moving back home cuts four years off saving a deposit for single first time buyers, and 33 years in London.
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Single first-time buyers and couples can significantly cut the time it takes to save for a deposit by moving back in with parents, or staying in the family home, according to new research from the leading residential estate agent, Hamptons International.

According to data from Hamptons International’s Time to Save Index, a single first-time buyer in England and Wales could reduce the time to save for a deposit from 13 years to nine years, while a couple could reduce the time taken from three and a half years to one and a half years. 

More young adults are now moving back in to, or remaining in, their family homes to save up than in previous years. ONS (Labour Force Survey) data shows that there were 6.6 million young adults (15 – 34 years of age) living rent free with family or friends in 2015 compared to 5.6 million in 2000. 

Key findings:

- An average couple in England and Wales could save for a 15% deposit in a year and a half, twice as fast as they could if they lived independently. (see table 1 for regional breakdown)

- Saving on rent makes home ownership more achievable for single first-time buyers in England and Wales too. They could buy their first home in four years and three months, nine and a half years earlier than if they had to pay rent. (see table 2)

- Higher rent relative to income in London means that buyers in the capital benefit most from staying with parents. The average London couple could cut five years off saving up time reducing it to less than three years, while a single buyer could cut it by 33 years. 

Fionnuala Earley, Residential Research Director at Hamptons International said:

“While slower house price growth and higher wages made affordability a bit better in 2015, first-time buyers still face high barriers to achieving home ownership 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- 34 now live with their parents.

“Staying at home could cut the time it takes a single buyer to save the required deposit by almost a decade in England and Wales, and by 33 years in London. 

“The Chancellor further improved the prospects for those saving a deposit when he announced the Lifetime ISA in March’s Budget. Available from 2017, together with the Help to Buy schemes and the increasing availability of higher loan to value lending, this eases the pain for would-be first-time buyers and cuts the time it takes to save up to purchase a property.”

Single first-time buyers and couples can significantly cut the time it takes to save for a deposit by

moving back in with parents, or staying in the family home, according to new research from the

leading residential estate agent, Hamptons International.

According to data from Hamptons International’s Time to Save Index, a single first-time buyer in

England and Wales could reduce the time to save for a deposit from 13 years to nine years, while a

couple could reduce the time taken from three and a half years to one and a half years.

More young adults are now moving back in to, or remaining in, their family homes to save up than in

previous years. ONS (Labour Force Survey) data shows that there were 6.6 million young adults (15 –

34 years of age) living rent free with family or friends in 2015 compared to 5.6 million in 2000.

Key findings:

An average couple in England and Wales could save for a 15% deposit in a year and a half,

twice as fast as they could if they lived independently. (see table 1 for regional breakdown)

Saving on rent makes home ownership more achievable for single first-time buyers in

England and Wales too. They could buy their first home in four years and three months, nine

and a half years earlier than if they had to pay rent. (see table 2)

Higher rent relative to income in London means that buyers in the capital benefit most from

staying with parents. The average London couple could cut five years off saving up time

reducing it to less than three years, while a single buyer could cut it by 33 years.

Fionnuala Earley, Residential Research Director at Hamptons International said:

“While slower house price growth and higher wages made affordability a bit better in 2015, first-time

buyers still face high barriers to achieving home ownership 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-

34 now live with their parents.

/…

-2-

“Staying at home could cut the time it takes a single buyer to save the required deposit by almost a

decade in England and Wales, and by 33 years in London.

“The Chancellor further improved the prospects for those saving a deposit when he announced the

Lifetime ISA in March’s Budget. Available from 2017, together with the Help to Buy schemes and the

increasing availability of higher loan to value lending, this eases the pain for would-be first-time

buyers and cuts the time it takes to save up to purchase a property.”

Contacts

For further information on Hamptons International please contact:

Sally Palmer
Press Office, Hamptons International
T: 07590183058
E: palmers@hamptons-int.com 


Alison Blease
Press Office, Hamptons International
T: 0776 967 7825
E: bleasea@hamptons-int.com


Fionnuala Earley
Residential Research Director, Hamptons International
T: 07760 163 120
E: earleyf@hamptons-int.com

About Hamptons International

Hamptons International is a leading residential estate agent and property services organisation, operating in London and the South of the UK.  With more than 140 years of experience in the property market and a commitment to industry innovation and exceptional levels of customer service, Hamptons International today offers a wealth of award-winning services including UK and international Sales, Lettings, Property Management, Corporate Services, Residential Development, Development Land, Valuation and Property Finance.

With headquarters in London’s Fitzrovia, Hamptons International has an international network of more than 87 offices and is a subsidiary of Countrywide, the UK’s largest estate agency and property services group.

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