First-time buyers can get on the property ladder nearly four-and-a-half years faster by checking into Mom and Dad's Hotel rather than buying on their own in the rental market.
This is according to the latest research from award-winning mortgage advisor Alexander Hall. 
Alexander Hall is based on the fact that you keep a portion (20%) of your net profit hidden away while renting and in return save on average monthly rental costs while living in your home. We looked at how much time it takes to save on your buyer's deposit. Mom and Dad.
The average price of a first home now stands at £245,208, according to the latest government figures. This means first-time buyers will need to find a 15% deposit worth £36,781 to get on the property ladder. This cost has increased by 35% over the past eight years.
But rising down payment costs aren't the only barrier to homeownership for many first-time buyers. Over the same period, average rental costs rose by 34% to £1,307 and incomes increased by a similar percentage (35%), but the average renter now pays 41% of their gross monthly income in rent. Masu. 50% of monthly net income.
And according to Alexander Hall analysis, based on historical rent and income data, the average renter currently needs to pay 20% of their mortgage to save up the £36,781 they need for a down payment on their mortgage. It shows that if you had saved, it would have taken you 85 months, or just over seven years. monthly net income.
But if that same renter had checked into Mom and Dad's hotel and stashed away their average monthly rent, they could have built up the same mortgage deposit in just 32 months.
Commenting on the study, Stephanie Daly, Director of Partnerships at Alexander Hall, said:
“Traditionally, the rental market has served as a stepping stone to homeownership for the majority of people, but with both house prices and rents rising at an alarming rate, many renters are now We realize we can’t jump there.”
Furthermore, she added: “Saving up a down payment for a mortgage is not only a daunting task, but when combined with high rental costs, it can prove impossible.
So while living with your parents at a more mature age may not be ideal, it probably means you can get on the property ladder sooner. ”
