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First-time buyers face £45,000 deposit


In just 10 years time, first-time buyers may face having to save up £45,000 for a deposit on a house if they have any chance of getting their foot on the housing ladder.

Sales and letting company KIS has estimated that the typical North East house will cost £187,000 by 2020; £230,000 by 2025; and £278,000 by 2030. If a general deposit is considered 20%, this would mean buyers having to find down-payments of £37,400 by 2020, £46,000 by 2025, and £55,000 by 2030.Deposits in other parts of the country may be required to be even higher.

This comes after different research from commercial and accountant company PwC showed that more than half of 20 to 39 year olds will be renting from private landlords by 2025. This would mean that UK owner occupation would fall to 60%, which would be a fall of 10% since the 2008 financial crisis.

A spokesperson for KIS, Ajay Jagota, said:
“A lot of the comment on these figures has concluded that more people are renting because they can’t afford to buy. While there is of course more than an element of truth in that, what often goes overlooked it a more profound cultural change which is seeing more and more people choosing to rent, something completely commonplace on the continent.

“It’s important to remember though that despite these trends and coming interest rate rises PwC are still predicting that record numbers of people will be owning their own home outright in a decade. 10.6m compared to 8.4 million today.

“The private rented sector will grow and grow in the next ten years – but this is far from the same thing as the death of owner-occupation”.

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