News

A report by the UK’s largest mortgage lender suggests a third of would-be first-time buyers have given up putting money aside for a deposit.

Halifax, which is owned by Lloyds Banking Group, found that half of those polled felt the country could be destined to become a nation of renters like much of continental Europe.

With the average deposit standing at almost £27,000, 35% of those questioned felt the only way they could afford a downpayment on a new home was through a bonus, windfall or inheritance. However the findings, published in The Telegraph, pointed out that prospective homebuyers should be aware of financial assistance on offer in the form of Government-backed initiatives.

Once such scheme called Help to Buy provides a loan of 20% towards the purchase of a new build home leaving the purchaser to raise a 5% deposit.

Scott Neal from affordable housing specialists, LPC Living, a company owned by the Pervaiz Naviede Family Trust commented, “When faced with the daunting task of saving up a large deposit it’s no surprise many young people have abandoned dreams of home ownership. However, schemes like Help to Buy have been designed to provide real help to those wanting to get their foot on the property ladder.

“With our three bed homes in Ordsall typically priced around £150,000 a 5% deposit would equate to £7,500 on the Help to Buy scheme and while that is still a considerable amount of money to save it’s much more achievable and the benefit is a home to call your own.”