Many first time buyers take second jobs to raise a deposit

Young people in London are taking on second jobs to get onto the property ladder, it’s claimed.

Of the first-time buyers in London surveyed, half of the 18 to 24 year olds (48%) said they are planning to take on extra work to save the amount needed for a house deposit.

However the survey is small - just 500 people.

This comes as the research finds 81% of first-time buyers in London from all age groups surveyed do not have access to a deposit of over £40,000 – the 10 per cent you may need to buy an average one-bedroom home on the capital’s open market.  

The research found that the average deposit held by potential buyers surveyed is just £22,963.

NHG Homes, part of housing association Notting Hill Genesis, partnered with Opinium to survey 500 adults in London who were looking to buy their first home. 

Nearly one in five (18%) buyers aged 18 to 34 say they’re planning on using money from family members that aren’t their parents to help with housing.  Similarly, a quarter of respondents aged 45 to 54 are planning on using inheritance money as a way to fund their deposit. 

Parents are still a key source of support for some though, with a quarter of respondents aged 35 to 44 saying they’re relying on money from their parents to fund the amount needed for a deposit. Just under a quarter (23%) of those in relationships also plan on using parents to help finance their first home.

Some 48% said they would consider using a Shared Ownership scheme if it meant they could purchase a property in London. 

While two fifths (43%) of 18-24 year olds would be willing to hold off on having children to buy their first home in London, less than a quarter of those aged over 25 would be happy to make the same sacrifice. 

An NHG Homes spokesperson says: “Getting on the property ladder in London is a real challenge for first-time buyers, and it’s not surprising to us that many are having to look beyond their main source of income to save the amount needed for a deposit. 

“Whether it be getting a second job or asking family members for a helping hand, this research has shown that buying through the open market in the capital requires more than simply setting money aside every month – particularly for younger buyers.

“The proportion of first-time buyers that would consider using Shared Ownership to purchase in London shows just how important it is to offer more affordable routes to home ownership.“