First-time buyers need more savings

The rising cost of living is making it difficult for first-time buyers to save for a deposit.

A report by Sainsbury’s Finance has revealed that 16% of first-time buyers aged 25 to 34 are saving less than last year, making it impossible to save for a deposit.

Only 9% admitted to saving more, while 36% had saved nothing at all.

Neil Cameron, savings manager at Sainsbury’s Finance, says: “First-time buyers need to have a larger deposit than they did a year ago, so those looking to get on the property ladder need to be saving more, not less.”

He adds: “Despite this, our research suggests that more people in the firt-time buyer age group are now saving less.”