Aspiring first-time buyers are facing a “harsh reality” with the amount of time it may take them to get onto the housing ladder, according to new research published by Yorkshire Building Society.

More than a third of UK adults (34%) aged between 18 and 34 see owning their own home as the most important life event they will save for, the findings indicated.

With three in five of them (61%) expecting to own their own home within four years of starting to save for a deposit, and with the average UK house price standing at £246,244, prospective buyers would need to save a 5% deposit of at least £12,312 on average to make their home owning dreams a reality. 

However, according to the Yorkshire’s research, which was based on findings among 2,000 UK adults, the average amount currently saved by those between the ages of 18 and 34 is £114 per month.

The society estimates it would take an aspiring homeowner nine years – more than double their expectation – to amass a savings pot big enough to cover the average 5% deposit needed to get onto the housing ladder. This timeline would increase to 18 years if aspiring homeowners are aiming for a 10% deposit, which the society suggested highlights the disparity between expectation and reality for many potential buyers.

“Buying a first home quite clearly remains a life ambition for many people but achieving that remains a struggle, particularly for first-time buyers,” commented Yorkshire Building Society senior mortgage manager, Ben Merritt. “The reality of having to save for nearly a decade is a stark reminder that the upfront costs of purchasing a house still prove too big a barrier to overcome for some.”

The Yorkshire’s research also looked at spending habits, which the society suggested could be the difference between buying a new property sooner rather than later. Almost two thirds (63%) of those surveyed said they regret spending on impulse purchases and wish they had saved the money instead – with an average of £164 spent impulsively each month.

Merritt added: “After almost a full year of staying at home with less opportunities to spend and more cosy nights in, we are reminding people to consider the financial cost of impulse spending. We’re not trying to deny life’s pleasures, we just want to help people save money that would enable them to be able to reach their home owning aspirations sooner.”

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