The cost of living has been squeezing the saving ability of households across the country, with single young people in particular often finding it the hardest to put money away.
Unfortunately, this means that the dream of owning your own home can often end up being less and less attainable for many.
Rising interest rates have been impacting various aspects of the economy.
Still, the steady increase of the Bank of England Base Rate has had a considerable knock-on effect on mortgage repayments, which recently hit a 15-year high.
But, before you get to the repayments, many companies (though not all) require around a 10% deposit to be put down in order to get a mortgage.
So, where are the worst locations in the UK to save for a deposit for a mortgage?
A recent analysis conducted by Cala Homes examined the weekly median income of more than 130 towns and cities across the United Kingdom.
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The study calculated the time it would take for an individual saving 10% of their income to accumulate a 10% down payment for a home with the median price in that area (as of September 2022).
Residents of the nation’s capital will not be surprised to learn London topped the list as, despite a higher median income (£747.40 per week) than other areas of the country, high property prices mean it would take one person an average of 37 and half years to save for the 10% deposit for a median detached house price of £1.49m.
Two other areas of the south – Watford and Woking – come in second and third place on the list, where it would take an astonishing 26.6 years and 23.9 years to save.
Cala go on to explain: ‘This is likely due to their proximity to and excellent transport links to London, making them a slightly more reasonable choice for commuters, compared to the city itself.’
The historic southern university cities of Oxford and Cambridge both make the list, in 6th and 8th place, respectively.
Indeed, every area of the top ten is placed in the country’s south, east, or southeast – with even larger northern cities like Manchester and the Scottish capital Edinburgh not making it to the list.
The worst UK locations to save for a deposit
The complete list of locations, average weekly pay, and how long it would take to save an average 10% house deposit:
Source: Cala Homes
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