New research by Compare My Move reveals the best and worst areas for first time buyers to get on the property ladder across Britain. The figures show how long it takes young renters in the 50 largest British towns and cities to save a deposit for their first home. The research looked at how long it takes to save the average 15% deposit compared to the 5% deposit needed for the Help to Buy Equity Loan, and highlights the amount spent in rent while saving.
The research finds that the average British renter can save enough for the 5% deposit in a year, compared to the 3 years it would take to save for a 15% deposit. Getting on the housing ladder faster helps millennials save £10k on average in rent costs.
Headline figures at a glance:
- Renters in only 14 of the largest cities and towns in Britain can save up for a 5% deposit in under a year.
- Burnley is best: Savers in Burnley can get together a 5% deposit in only 7 months.
- Oxford is worst: Over 5 years of saving for a 5% deposit, 17 years for a 15% deposit.
- Young renters in London, Reading, and Cambridge take more than a decade to save up a 15% deposit on their first home.
- London renters can trim off 7 years of saving through the Help to Buy scheme, as it takes the average millennial 3 years and 7 months to save up a 5% deposit.
- The average first time buyer in Britain pays £15k in rent while saving up a 15% deposit, and £5k for a 5% deposit.
The best areas for first-time buyers:
|Area||Avg 15% FTB Deposit||Years to Save 15%||Avg 5% FTB Deposit||Months to Save 5%|
|Burnley||£10,436||1 Years and 9 Months||£3,479||7 Months|
|Dundee||£14,998||1 Years and 10 Months||£4,999||8 Months|
|Hull||£14,776||2 Years and 3 Months||£4,925||9 Months|
|Sunderland||£14,930||2 Years and 4 Months||£4,977||10 Months|
|Blackpool||£14,306||2 Years and 5 Months||£4,769||10 Months|
|Liverpool||£17,026||2 Years and 5 Months||£5,675||10 Months|
|Glasgow||£17,168||2 Years and 6 Months||£5,723||10 Months|
|Preston||£16,098||2 Years and 6 Months||£5,366||10 Months|
|Doncaster||£16,591||2 Years and 7 Months||£5,530||11 Months|
|Huddersfield||£18,927||2 Years and 7 Months||£6,309||11 Months|
|Bradford||£17,940||2 Years and 8 Months||£5,980||11 Months|
|Edinburgh||£18,574||2 Years and 8 Months||£6,191||11 Months|
|Wolverhampton||£18,889||2 Years and 8 Months||£6,296||11 Months|
|Dudley||£21,950||2 Years and 8 Months||£7,317||12 Months|
The worst cities for firest-time buyers:
|City||Avg 15% FTB Deposit||Years To Save 15%||Avg 5% FTB Deposit||Years To Save 5%|
|Southend- on-Sea||£35,767.50||5 Years and 9 Months||£11,922.50||1 Years and 11 Months|
|Swindon||£28,145.85||6 Years and 1 Months||£9,381.95||2 Years and 1 Months|
|Bristol||£37,861.78||7 Years and 8 Months||£12,620.59||2 Years and 7 Months|
|Crawley||£38,324.16||9 Years and 2 Months||£12,774.72||3 Years and 1 Months|
|Slough||£41,711.53||9 Years and 5 Months||£13,903.84||3 Years and 2 Months|
|London||£63,070.67||10 Years and 7 Months||£21,023.56||3 Years and 7 Months|
|Reading||£41,147.76||10 Years and 8 Months||£13,715.92||3 Years and 7 Months|
|Cambridge||£55,551.55||14 Years and 3 Months||£18,517.18||4 Years and 9 Months|
|Oxford||£53,105.08||16 Years and 12 Months||£17,701.69||5 Years and 8 Months|
Compare My Move Co-Founder Dave Sayce said: “Our research shines a light on the struggle many young renters face in getting together a deposit for their first home.
“In many cities it’s a race against rent to save a deposit as a prospective first time buyer. In cities and towns where rent greatly outstrips the national average, it can take more than a decade for renters in their 20’s to save up a 15% deposit.
“It’s clear from our research that the Help to Buy scheme acts as an important catalyst for getting renters on the property ladder, and its extension to 2023 in the recent budget will act as a lifeline to generation rent.”