Business

First-time buyers typically saving nine years for a house deposit

Co-Ownership chief executive, Mark Graham
Gareth McKeown

FIRST-time buyers must typically save for almost nine years to afford a deposit for a house according to new research from Nationwide Building Society.

In Northern Ireland, the data showed that a 20 per cent deposit would amount to around £24,000, typically taking just under nine years to save.

Following the release of the new figures, Co-Ownership, the north's main provider of shared ownership, is seeking to re-assure potential first-time buyers support is available to combat growing difficulties around saving for a deposit.

“The data demonstrates the impact low wages and interest rates are having on potential first-time buyers who are struggling to raise the money to afford a deposit," Co-Ownership chief executive, Mark Graham said.

“With shared ownership you don't have to wait up to nine years to save for a deposit. In many cases you don't need a deposit at all, as a number of mortgage lenders accept our share in the property as the deposit."

Co-Ownership is also trialling ‘Rent to Own', a new way into home-ownership for potential first-time buyers in Northern Ireland that allows the customer to enter a fixed-term rental agreement for up to three years. After the three year period, 25 percent of the tenant's rental payments are returned to act as the deposit in purchasing the property.

“Through Rent to Own you are able to live in the home you want now, without waiting years to save for a deposit. At the same time as living in the property you want to be in, you have the option to own it later," Mr Graham added.

Co-Ownership is hosting an open evening on Thursday, February 1 from 4.30 pm to 7.30 pm at its offices in Murray Street, Belfast, where prospective home-owners can find out more about the support that is available to them while also meeting with potential mortgage lenders to talk about mortgage options.

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