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The property Ladder | You can do it

Escalating UK Domestic Debt Problem

Research has been carried out in recent years and the following is a summary of why it is estimated that it will take an average of 15 years for a first time buyer to save up the deposit for their first flat or house:

Savings in the UK have fallen to record low levels and millions do not have a safety net. It only takes the lightest touches to send people spiralling down the bankruptcy lane - a period of illness or a divorce.

Average household debt in the UK is approximately £7,713 (excluding mortgages) and £45,437 including mortgages.

The average owed by every man, woman and child in the UK is approximately £18,757 (including mortgages).

The Average consumer borrowing via credit cards, motor and retail finance deals, overdrafts and unsecured personal loans has risen to £4,087 per average UK adult at the end of August 2005. This figure translates into a 10% increase on the previous year's levels and a 45% increase since 2000.

According to a leading Professor at the University of York's Sociology Department "people normally think of people in poverty being single mums on council estates or people living in a rented bed-sit, but this is a stereotype. By far the largest number of people in poverty are homeowners, many of them young first time buyers

According to the professor, the financial strain of buying their first home leaves many first-time buyers with little disposable income.

The dilemma that our clients face is that the more they try to save towards their deposit, the more the property prices keep on rising. This leaves them in a catch 22 scenario.

Without help from family, most young people continue renting because they can not afford to save up for their first deposit to get on the property ladder