First-time buyers facing £60,000 deposit by 2020, reveals report

Published by Max Salsbury for 24dash.com in Housing and also in Finance

Those looking to buy their first home will face a deposit of £60,000 by 2020, a new report has revealed.

And in London, costs are predicted to rise even more sharply, with down payments forecast to swell to £110,000.

According to consultancy Oxford Economics' analysis, first-time buyers put down an average deposit of £43,000 in 2012.

The average price of a house in England last year was £173,185 but this is expected to rise to £245,165 by the end of the decade.

The report was commissioned by the National Housing Federation (NHF).

Teresa Richardson, assistant director for campaigns and communications at the NHF, said: "England is facing a housing crisis of huge proportions and a whole generation is at risk of being priced out of home ownership forever. By 2020, the average deposit required for a first home will be more than £60,000 – and in London it will top £100,000. Where are young first time buyers and hardworking families supposed to find the money for the safe, secure home that so many of us aspire to?

"The solution is simple: we need to build more homes. It’s everyone’s responsibility to make this happen. The Government must take action as a matter of urgency, supporting developers and local councils to work together to turn the tide of an escalating crisis. But, perhaps most importantly, local people themselves need to make their voices heard and tell our leaders that housing really matters. It’s time for us all to say Yes to Homes."