The study also revealed that the average first-time buyer has spent a year-and-a-half saving £3863 towards their deposit, but think they need nearer £13,490 before they will be able to buy a home.
One in ten respondents have been saving for five years or more and still do not have enough deposit, while more than 30% have no savings to put towards a deposit at all. More than 20% felt they would need more than £10,000 for a deposit while a quarter of all respondents said they would ask for help from a relative to raise the cash.
Sue Warwick of Miller Homes said: "These results show that deposit concerns continue to keep many first-time buyers out of the housing market, despite Government and housebuilder shared equity schemes which aim to help people onto the housing ladder with little or no deposit. Whilst many first time buyers have been helped by these schemes, it is clear that the message is not getting through to all."
The survey also found that 48% of first-time buyers were concerned about reports of lenders becoming more stringent in their lending requirements. However, 70% also responded that they have not given up on the dream of owning their own home and a further 70% refuse to resort to desperate lending or credit to finance their mortgage deposit.
Warwick said: "It is heartening to see that first-time buyers are not giving up the dream of owning their own home and are not willing to resort to credit to finance a deposit. Whilst loan to values have become much tighter, the reality is that there has never been a better time for first-time buyers to get onto the housing ladder. Prices are significantly lower and there is help out there in the form of shared equity deals which offer first-time buyers 100% ownership of their home from day one. These measures mean that homes are more affordable to first-time buyers than they have been in a long time."
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