Monday 21st April 2008
Sainsburys Bank has published figures which indicate the typical age of first-time buyers (FTBs) in the UK could be set to rise.
The financial services provider notes that the current average age of FTBs is 29.
However, research from the bank detects a decrease in the amount of money being set aside for use as a deposit on a property.
In the key demographic for FTBs - those aged between 25 and 34 - the typical savings being made are falling.
Neil Cameron, savings manager at Sainsburys Finance, says: "FTBs need to have a larger deposit that they did a year ago - in some cases as much as 25 per cent as many mortgage lenders continue to restrict their deals."
But he adds: "Despite this, our research suggests that more people in the FTB age group are now saving less."
Some 16 per cent of respondents to the survey from the age group admitted to saving less now than at the same time last year.
More than a third (36 per cent) could find it impossible to enter the housing market as they stated they have no spare funds to save towards a deposit.
In light of the tightening credit conditions, Mr Cameron suggests that consumers should ensure their savings remain accessible should they be required.
But he urges that those moving to an instant-access savings account should check that they are not likely to be penalised for withdrawing funds.
Sainsburys Bank recently estimated that Britons are currently looking to transfer about £1.1 billion in credit card balances to new interest-free deals.
However, those hoping to do so were warned of the falling number of favourable packages to be found in the current climate.
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