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Revealed: The best and worst areas for first-time buyers

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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.”




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