The Deposit Barrier for Buyers
First-time buyers across the UK continue to struggle with saving for a deposit while managing high rental costs and living expenses. Pre Ramteke, who moved to the UK from India in 2021, noted that saving for a deposit on a three-bedroom home could take several years despite her and her partner's ability to cover potential monthly mortgage instalments. Estate agent Zunara Tariq of Oakmere Signature Homes noted that affordability remains a major challenge even for individuals earning high salaries, as lenders maintain cautious lending practices amid rising property prices.
Expectations from the Government's Property Scheme
Ahead of the Budget, the government is expected to release further details regarding its proposed Your First Home scheme. The initiative aims to help first-time buyers get onto the property ladder by offering deposits as low as 2.5% alongside government-backed equity loans for eligible purchasers of new-build homes. While self-employed electrician Tyne Steele welcomed incentives like the Lifetime ISA, he emphasized that wider financial pressures, such as unexpected vehicle repair costs, continue to drain savings pots while renting.