Exclusive data from Cornerstone Tax, the nation’s leading property tax consultant, reveals that 59% of Brits cannot afford to save for a deposit on their current salary.
This comes in light of fresh analysis using figures from the Office for National Statistics (ONS) which has found that a typical first-time buyer in London will have to save 31 years to raise a deposit on a home.
According to David Hannah, Group Chairman of Cornerstone Tax, the Government and the Bank of England must urgently act to prioritise the future of Britain’s first-time buyers.
Cornerstone Tax’s research has also found that 54% of Brits claim that their family are unable to provide them with the financial help necessary to secure a deposit, whilst 44% say that they cannot live in their desired location because of increased house prices in the community, indicating that affordability is not just a problem isolated to London.
Whilst hope appears to be on the horizon for those looking to take their first step on the housing ladder, with Rishi Sunak pledging to drive through plans to build hundreds of thousands of new homes in Britain’s biggest cities, admitting that the Conservatives had “much more to do” to help young people.
David Hannah asserts that pressure should also be directed towards the policymakers within the Bank of England, with sky-high mortgage requirements continuing to erode the budgets of prospective buyers.
David Hannah, Group Chairman of Cornerstone Tax, said, “Our latest findings illustrate a stark reality on the ground of the nation’s housing market, with the dream of homeownership remaining outside the grasp of many would-be buyers.
“Whilst it’s reassuring to see the Conservatives admit fault on their historically lacklustre approach to housing, pressure must also be directed towards Andrew Bailey and the Bank of England.
“Interests rates are currently sitting at a fifteen-year high and this is having an indisputable impact on the affordability of mortgage deposits for first-time buyers.”
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