
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.