Recently released data indicates that it will take up to nearly twenty years to save up the deposit for that first home.

Using the salary and savings data from over one million Britons as well as publicly available house price data, InvestorBee.com has calculated how long it would take to save for a house deposit.

The figures show that Northerners would take the least amount of time at ten years, whilst those in the South East and South West would take over 15 years and those in the Greater London area would be saving for a staggering 19.6 years.

Region

Ave Wage

Ave Saving Rate

Ave House Price

Time to Save 20% Deposit

North

£27,859

10.6%

£153,025

10.4 years

East Anglia

£34,443

9.6%

£196,911

11.9 years

Northern Ireland

£24,120

10.3%

£148,292

11.9 years

East Midlands

£28,289

10.0%

£169,411

12.0 years

North West

£26,368

9.8%

£163,030

12.6 years

Yorks & Humber

£25,905

9.6%

£166,228

13.3 years

Wales

£25,233

9.3%

£160,328

13.7 years

Scotland

£25,257

9.4%

£163,418

13.8 years

West Midlands

£27,432

9.4%

£183,551

14.2 years

South East

£37,230

10.0%

£291,268

15.6 years

South West

£28,167

10.1%

£236,250

16.6 years

Greater London

£45,758

9.6%

£429,912

19.6 years

Only regions with representative samples are shown.

The table is based on wages and house prices rising at about the same rate as well as all saving being ploughed into saving for the deposit.

Although it could be argued that first time buyers may not buy ‘average houses’ it could as easily be argued that they would also be on less than ‘average’ wages. There again, recent statistics show that the average first time buyer is now just under the age of forty, so may well be on the average wage with an average family and need an average house.

Although Londoners enjoy higher average earnings this is more than offset by the combination of the higher cost of living in the capital and the much higher house prices.

Although Northerners are at the lower end of the wages scale they are the nation’s best savers putting aside 10.6% of their income.

Buying a house though was not the main aim for savers. 22% of those asked stated that their top priority for saving was for retirement. After that 12% said they were saving to accumulate an emergency fund.

More worryingly 22% said that they were not saving at all. But who can blame them when inflation is running at about 5% a year and savings returns in most cases do not even match it, which effectively erodes the true value of the money saved over time.

Managing director and InvestorBee founder, Graham Mannion said “On average across the UK, where Brits choose to save, they’re putting aside 9.7% of their salary. Retirement and emergency funds are currently the highest priorities for savers. But with the current rate of inflation at over 5%, standard savings accounts are not preserving long-term spending power. So, should UK savers be looking elsewhere to make the most of their money?

To learn more about how people in the UK are saving and investing, visit www.investorbee.com

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