First-Time Buyers Face Hurdles as Government Scheme Nears

Aspiring homeowners are facing significant challenges in saving for a deposit due to rising rents, the cost of living, and increasing house prices, with many pinning hopes on upcoming government initiatives. Pre Ramteke, who moved to the UK in 2021, described her dream of homeownership as feeling increasingly out of reach. She currently pays around £900 a month in rent, but securing a deposit for a property remains a primary hurdle for her and her partner.

"The deposit is what is the biggest challenge for us," Ramteke told the BBC, estimating it could take three to four years to save enough for a deposit on a typical three-bedroom home. She noted that mortgage installments would likely be comparable to her current rent, but the initial savings requirement is the main barrier.

These concerns come ahead of the government's upcoming Budget, where further details of the proposed Your First Home scheme are expected. The initiative aims to assist more first-time buyers in entering the property market.

Estate agent Zunara Tariq of Oakmere Signature Homes echoed these sentiments, identifying affordability as a critical issue for buyers. "It's a really tough time to save for a deposit," Tariq said. "Even people who are on [big] salary jobs are finding it really hard. Affordability is a massive thing that we've seen at the moment, and cost of living and affordability work hand in hand."

The average interest rate on a new five-year fixed mortgage deal has reached 6% for the first time in three years, further complicating the path to homeownership for many potential buyers. Ramteke, who completed her studies in London before moving to Rugby, expressed a desire to establish roots but finds the financial landscape daunting.