Seven in 10 (70%) first-time buyers looking to purchase in the next 12 to 24 months are delaying as the rising cost of living impacts their ability to save towards a deposit, according to a new study from Nationwide.

On average, prospective first-time buyers say they will delay buying a home for nearly two years, with around one in five (19%) indicating they are to pause their homeownership aspirations for more than three years.

The South West (23%) and Wales (28%) are the areas where potential homeowners are most likely to delay that purchase for more than three years.

Nationwide’s study, which polled more than 2,000 people looking to buy their first home within the next five years, revealed that a deposit is the biggest hurdle, with 28% of respondents claiming it is the most difficult part of home ownership to overcome.

A 10% deposit on a typical first-time buyer home is at nearly 60% of gross annual income, which Nationwide confirmed is a record high. By contrast, just 14% of the study’s respondents said the biggest hurdle is the ability to borrow enough, while 12% believe keeping up with mortgage payments to be the main challenge.

When asked whether 2022 is a good time to buy their first home, those starting out and looking to get onto the property ladder were closely split – 51% disagreeing and 49% agreeing with the statement.

Nationwide senior mortgages manager, Paul Archer, said: “Building a deposit remains the single biggest barrier to homeownership today, with many people starting out facing a long uphill battle to save. The rising cost of living has made this even harder.

“With high house prices and the rising cost of living, we need to tackle the first-time buyer challenge on multiple fronts. Which is why over the last couple of years we’ve ramped up our support for first-time buyers.”

Archer added: “We also know that each person’s situation to buying a home is different, which is why we’re launching our new first-time buyer hub. We want people to be able to use the supporting guides and information to help them navigate their own specific journey to that first home.”

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