Months shaved off time it takes couple to save house deposit - report

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A young couple can now save for a deposit for their first home three months faster than they could a year ago typically - but it will still take them more than five years, a report has found.

Hamptons International's research looked at the amounts first-time buyers across England and Wales would typically have left over at the end of the month after tax and regular bills.

It assumed first-time buyers needed to build a 15% deposit and were saving 22% of their income after tax and essential spending such as food, transport, utilities, council tax and rent. 

The report said falling mortgage rates have helped to improve conditions for borrowers, as have wage growth and low inflation, although house price growth has kept costs up.

It found in June 2016 an average couple, working full-time and aged between 21 and 29, could save a 15% deposit three months faster than the research found it would have taken them in June 2015. The average time it would now take them to save would be five and-a-half years.

A single first-time buyer would need to save for just over 10 years to build this size of deposit, the report found.

In London, where house prices are significantly higher than the rest of the country, a couple trying to get on the property ladder would take nine and-a-half years to save a deposit on average, and a single buyer would need 14 years, the report found.

Fionnuala Earley, director of residential research at Hamptons International said, for some aspiring first-time buyers: "The dream of a new home could become a reality a little sooner."