Large home deposits drive up average first time buyer age

As the recession and steep house prices continue to daunt homebuyers, recent research has found that the average age of first time buyers is creeping towards the 30s.

A survey from Rightmove found that the proportion of first time buyers looking to purchase property has fallen for the second successive quarter to 25.8 per cent.

The Press Association reports that Miles Shipside, commercial director of Rightmove, said: "First-time buyers play a crucial role in keeping the market moving by helping to complete chains, and their continued absence delays any prospect of a meaningful market recovery."

The fall has prompted Jane Marr, company director at the Little House Company, to warn that many Britons may not be able to start climbing the property ladder until they reach their 30s.

According to About Property, Ms Marr claimed that a likely cause for this trend is that large deposits are now needed to purchase property. She said: "I can foresee the situation where people in their 20s do not consider homeownership and that it will only become a realistic goal once in your 30s as your pay increases and you have had longer to save."

As young prospective homebuyers are forced to rent for longer, they are encouraged to take out contents insurance to protect their property and factor home insurance payments into their saving plans for the future.

The combination of factors delaying purchases means that buyers are increasingly being forced to investigate alternative ways to secure a place on the property ladder, such as pooling resources with friends to buy a shared property or taking part in rent-to-buy schemes.

A recent survey also found that first time buyers are increasingly looking for energy-efficient homes as a way to save money on future heating bills and home insurance policies.

Thu, 11 Mar 2010 02:00:00 GMT