In 2022, the average deposit value was 115% of first time buyers average earnings.
The increase of house prices and mortgages are the causing the issue resulting in 2023 becoming the ‘crunch year’.
A report from the Leeds Building Society have said that up to 426,000 first time buyers will be priced out of the UK housing market between 2023-2027.
John Brenan, the Head of External Relations at Leeds Building Society states: “the research we commission showed over the past 40 years, the situation has got much more acute for people trying to get on the housing ladder.
“So the challenges they face are around raising a deposit in the first place its increased dramatically over that time.”
First time buyers are not the only ones being affected from this issue. Georgie Springwell, the manager of Springwell Letting Agency in Headingley has experienced issues with the landlords they rent for.
Springwell states: “a lot of landlords have been wanting to sell recently because they cant afford the mortgage payments.”
This has left agencies with less houses to rent for buyers.
The Chief Executive Officer of Leeds Building Society says: “we need a long-term plan for housing.
“This starts with building the homes our country needs, more affordable routes to ownership and support for savers.”
There is a risk of creating a lost generation of first time buyers- the long term plan needs developing before things get even worse.
A report from Leeds Building Society reveals, ‘we forecast fewer first-time buyers each year than in 2022, recovering only after 2027.’
