NI first time buyers need longer to save

It is now harder than ever for first-time buyers to get on the property ladder in Northern Ireland, a new survey has revealed.

According to research from National Savings and Investments (NS&I), the government-backed savings and investment provider, Northern Ireland has seen the biggest rise in the time it takes to save for deposit – it now takes 9 months longer than in 2004 Q3 for a first-time buyer to save the required deposit. Across the UK the time taken to save a 5% deposit increased by 3 months.

Dax Harkins, senior savings strategist at National Savings and Investments, said: “Despite a recent cooling house market, house prices have continued to outstrip both savings rates and incomes over the last year which means potential first-time buyers need to start saving sooner and harder to get into the market.”

However, although the situation remains tough for first-time buyers, a cooling house market offers a chance to ease their burden. House price inflation has slowed in the past six months, with prices rising just 2.4% from £143,743 in 2004 Q3 and there has been a stabilisation in the time it takes to save a deposit in some regions.

According to the University of Ulster's House Price Index report published earlier this month, the average price of a house in Northern Ireland has hit £122,661.

(MB)