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First-time buyer crisis: 28% are delaying major life events!

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1980, The average house costs only £ 19,273!! If the price stays at this level, first-time buyers only need to spend about two-thirds of their salary to buy the asset. However, more than 40 years later, in 2021, home prices have risen sharply, making it harder for first-time buyers to buy a home than ever before.

NS Average price of a house in August 2021 It was 264,000 pounds. This reflects a 10.6% increase from the average cost of the previous year, showing how rapidly prices are rising.

As a result of constant price inflation, first-time buyers are facing a housing crisis.New research by London-based FinTech Tenbo It emphasizes how difficult it is to save a home in 2021.

First-time buyers are delaying major life events

Despite the surge in savings during a pandemic, many first-time buyers Save enough for their first home. According to Tembo, the average amount saved by young people during the blockade was only £ 6,183.77. on the other hand, Average housing deposit The first home in the UK costs £ 57,000.

Due to the difficulty of blocking, 10% of first-time buyers saved nothing last year. This puts them at a serious disadvantage when it comes to riding a property ladder.

Most first-time buyers expect the cost of their first home to be nine times the average salary in the UK. As a result, more and more young people have to delay major life events in order to buy a home.

According to a Tembo study, one in five first-time buyers is delaying childbirth due to savings. In total, 28% of first-time buyers are delaying major life events in their financial decisions because they want to own a home.

What are the main barriers to savings?

More than 14% of first-time buyers have no savings and less than 7% are enough to pay a 10% deposit on a £ 200,000 home. The main barriers to saving money faced by young people are student loan repayments, rent payments, invoices and groceries.

Wage gaps between men and women are also causing problems for many first-time buyers. Savings barriers for deposits have been reported to affect women more than men, with 56% of women saying rent is the main issue compared to 42% of men. .. Also, during the pandemic, females saved 35% less than men. Men managed to stack up £ 7,679.67, while women saved only £ 5,038.41.

Will house prices continue to rise?

The bad news for first-time buyers is that home prices aren’t expected to drop anytime soon. actual, Budget Responsibility Department predicted By 2023, home prices will rise 13% in three years. This forecast is made after 2021 home prices rise much faster than expected.

By this time next month, average UK home prices are expected to rise.According to the report of Limited express, The average house costs £ 342,836 January 2022..

House prices are rising for several reasons. The coronavirus pandemic is straining the number of homes available to first-time buyers. This caused the “space race” and led to soaring prices.

Even before the pandemic, home shortages brought huge price inflation and didn’t seem to stop immediately.

High UK home prices can mean that young people are forced to continue renting for the long term rather than taking the first step on a real estate ladder.

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First-time buyer crisis: 28% are delaying major life events!

https://www.fool.co.uk/personal-finance/the-first-time-buyer-crisis-28-are-delaying-major-life-events/ First-time buyer crisis: 28% are delaying major life events!

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