By: Sarah Williams

As house prices rise quicker than wages, aspiring homeowners are struggling to raise the deposit needed to purchase their first home. Soaring house prices along with average earnings mean first time buyers are finding it extremely difficult to find a decent deposit for a house.

The statistics illustrate this struggle. The UK First Time Buyer house price to earnings ratio stands at 5.5 currently, having increased from the previous ratio of 5.4 in 2007 and significantly higher than the general average of 3.8.

Nationwide have reported that rising house prices compared to average wages have resulted in a 20% deposit of a home being equal to 110% of an individuals average income. This is at a record high level and has increased 8% in the last year alone. The average deposit for a first-time buyer mortgage is now £43,433.

The building society have found that many aspiring homeowners now must rely on friends and family to raise a reasonable deposit for a house. 

However, it is not all doom and gloom. The government do offer several schemes to assist first-time buyers onto the property ladder, such as: Shared Ownership, Help to Buy and Lifetime ISA's. In addition, some lenders offer special deals to help individuals purchase their first home. Get in touch with us today to learn more.