First-time buyers could find it harder to buy a home even if prices plunge, report finds

Plummeting property values may not be the boon that aspirant homeowners are looking for – with wages set to fall and banks likely to tighten lending criteria, first-time buyers could be worse off, says think tank

In 1990, it took a couple on average earnings around four years to save for the deposit on a typical home, if they set aside 5 per cent of their income each month. By 2019, that figure had jumped to 21 years

UK house prices have risen to such astronomical levels that it will take the average first-time buyer 27 years to save up enough for a deposit – even if property prices plummet due to the coronavirus pandemic.

In a cruel irony for aspirant homeowners, that perfect “starter flat” or “investment property in need of some modernisation” they have had their eye on could move even further out of reach, even as prices fall, according to the Resolution Foundation.

The think tank’s findings will deal another blow to any renters who have not already resigned themselves to a life of insecure and overpriced private tenancy.