However, one in four current non-homeowners (26%) say they are hoping to buy within the next five years.
More than a quarter (28%) of hopeful first-time buyers say they will turn to second jobs or overtime to secure their deposit funds and 27% say they are prepared to take on extra debt by taking out a personal loan to raise the money. This differs considerably to current homeowners, who purchased their properties an average of 12.5 years ago, of which just 5% say they relied on overtime or a second job and 4% took out a loan to raise their deposits.
Savings (54%) remain the most popular way of funding a deposit but the proportion of potential buyers relying on inheritance money has almost doubled, moving from 8% for current homeowners to 14% for aspiring first-time buyers.
Renting out a spare room (7%) and sharing the deposit payment with friends (6%) are also increasingly popular methods of affording a deposit.
Phil Cliff, Director of Santander Mortgages, said: "The housing market is a tough place, particularly for first-time buyers and with property prices averaging over £200,000 it’s no wonder people are becoming increasingly resourceful when it comes to raising deposit. Despite a somewhat stagnant housing market, the mortgage market is actually very competitive, which is why it’s vital that people shop around to ensure they are getting the best possible mortgage deal."
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