New research just released by MyJobQuote highlights the fact that the UK’s north-south divide definitely favours would-be first-time buyers living in the north of England and Scotland.
The Bank of Mum and Dad
The ‘bank of Mum and Dad’ was the top choice for savers asking for a bit of extra help getting onto the property with 51% borrowing from parents, 29% tapping into funds from their grandparents and 16% using cash from other family. A total of 6% anticipated receiving financial input from their employer and 7% intended to seek funding from a former partner.
North-east rank top savers
In the north-east of England, savers managed to pull together the largest deposit, averaging £9,875, followed by Scotland racking up average deposits of £8,327 and Yorkshire with £7,939. As property prices in London outrank everywhere else, as do living costs, the average deposit saved was a mid-range £5,106; whereas the south-east came in with a modest £1,560, the east of England’s average savings were £2,485 and just £1,357 for the East Midlands.
Temptation dwindles deposits
Temptation emerged as a reason for deposits to dwindle with 54% admitting to dipping into their house savings pot – of which 28% was spent on socialising and 33% for holidays.
Lisa Evans from MyJobQuote said: “It’s not easy to put money aside. Although house prices tend to be more expensive in the south and London in particular, this isn’t reflected in the amount that first-time buyers are able to save, meaning their journey will be both longer and slower than someone looking to purchase in the north.”