A new tool has been developed to show how long it will take to buy your dream home – and you might be surprised by how soon you can make that step onto the property ladder
A new tool has been created to calculate how long it will take you to afford your dream home – and the results may surprise you.
By entering your income, how much you have saved in a Lifetime ISA, and the location in which you want to live, the tool can estimate how much you need to save and how long it will take.
This comes after a study of 2,000 adults who don’t own property found that over half fear they’ll never get on the property ladder. More than a third attribute this to low income, while 10 per cent admit they struggle to save due to a lack of knowledge about the financial options available to them.
Furthermore, two thirds worry that even with a substantial deposit, they won’t be able to afford high mortgage payments. Eight in ten wish they’d been looking for a house in the 90s when getting on the property ladder was more affordable on a smaller salary.
Rajan Lakhani, a spokesperson for Plum, which commissioned the survey, said: “For many young people – and, increasingly, not so young people – taking that first step feels like a long way off.”
“However, starting early and putting a plan in place with a clear target can be a really powerful tool to help stay motivated during those years of saving for a deposit.”
The study also revealed that the prospect of buying property makes people feel anxious (36 per cent) or even hopeless (30 per cent). However, still, 23 per cent are excited about the prospect. Even those not actively looking to purchase are keeping an eye on the market, viewing an average of two properties per week.
Almost half anticipate having to settle for a less desirable location just to get their foot on the property ladder. Despite the uncertainty, 74 per cent believe that owning a home is crucial for financial security.
Rajan Lakhani, from Plum, commented: “There’s no doubt that getting onto the property ladder is tougher than it was for previous generations and this naturally creates anxiety. But there are plenty of options to give you the kick start you need to achieve your house buying dream.
“Apps are making it easier for savers to put money aside regularly thanks to automation. And you can make those savings work harder through a Lifetime ISA, which can give you up to an extra £1,000 from the Government each tax year towards a deposit.”
Use the tool to see how close you are to owning your dream home.