Generation rent face uphill battle to buy first property as house prices rise again
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Millennials face an ‘impossible task’ buying a first house first home in Ipswich, with the average starter home in the town costing £60,000 more than the national average.
Latest figures show the cost of the average starter house in Ipswich has risen 4.7% over the last 12 months to £170,427.
The news comes as a survey conducted by Compare My Move revealed that first-time buyers need to save up for an average of three years and nine months to raise the money needed for a 15% deposit on an average home - and in that time they will spend £18,000 on rent.
Megan Aldous, of Ipswich, is saving for a deposit on a house with her boyfriend.
She said: “We have been saving for about a year and a half and we haven’t got very far.
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“I think that if people really want to save up it is possible, but they might just have to cut back on going out for meals or not go on holiday.
“It is difficult when things go wrong though, like if your car breaks down.”
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The average salary for 22 to 29-year-olds in Ipswich is £1,558 a month. But, after deducting £400 for rent and £583 for living costs, prospective buyers are only left with £575 a month for savings.
This means it would take 45 months to save up the £25,000 needed for a 15% deposit for a first house.
Ipswich Estate Agent, Simon Clow, of Palmers and Partners, said: “About a quarter of our clients are first time buyers. The only change that we have seen is a big increase in people being given the money from families for a deposit .
“Saving up a deposit at the moment can feel like an impossible task with rent prices as they are.
“Ipswich is still a good place for first time buyers because it is still relatively cheap in comparison to some towns in the area. Colchester house prices are 15% higher than Ipswich.”
Another Ipswich resident said: “At the moment, I manage to save between £200 and £400 a month, but I often dip into my savings and struggle to keep it topped up.
“I’ve got friends in the area who have no idea when they’ll get a house, with lots staying at home, and others living paycheck to paycheck.”
To see the full set of data online, click here.