Saving For Property Deposit Now Close To Impossible

According to Zoopla, experts predict that owing to low household incomes and static economic conditions, saving up for property purposes have now become close to being impossible.

An ever lasting increase in house price is also defined as one of the reasons behind the low purchasing powers of people. Matt Griffith, spokesman for PricedOut has said that market for the first time purchasers is relatively tough largely due to house prices being so high. The reluctance of mortgage lenders to provide competitive rates, on the other hand adds to the troubles in paying mortgages. His comments followed the publication of a report by Moneyfacts, which showed that rates on mortgage deals requiring a ten per cent deposit had fallen below six per cent for the first time since March 2008. The data also revealed that there are 41 per cent more mortgage deals that only require a ten per cent deposit than there were a year ago.

Mr Griffith further predicted that those who wish to purchase the house for the first time and keep putting their money aside to achieve a successful sale, still have to face sufficient hurdles as the houses with low deposits still turn out to be high level deals in terms of the over all prices.

"First-time buyers still face a significant deposit hurdle - even what looks like a small deposit can be very large in cash terms given the high level of overall house prices," says one of the experts.

He further added that first-time buyers also face "strong headwinds" to their efforts to save, including low savings rates, high levels of inflation, stagnant wages and rising rents.

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