Buying a home is a major financial goal for many people, but for those who live alone, the path to homeownership can be particularly challenging. According to recent findings, single buyers often face significantly higher living costs compared to couples, making it more difficult to save for a deposit. In fact, it can take solo buyers up to ten years longer to purchase a property due to these financial hurdles.
Higher Living Costs for Solo Renters
One of the main reasons it takes solo buyers longer to save is the disparity in monthly living costs. People who live alone typically spend nearly £500 more per month on essentials such as rent, bills, and groceries than those in two-person households. The average solo renter spends £1,832 a month on these basics, while those sharing a household only spend £1,334. This extra cost leaves single renters with significantly less disposable income, making it harder to set aside money for a home deposit.
The Savings Gap Between Solo Buyers and Couples
The ability to save for a home deposit is heavily influenced by disposable income. According to the Office for National Statistics, the average post-tax salary in the UK is £2,382 per month. While couples can pool their incomes and share living costs, solo renters have only their own income to rely on. This creates a large gap in savings potential.
Couples, on average, are left with £2,096 of disposable income each month after covering rent, bills, and other essentials. In comparison, solo renters are left with just £549. This means that couples can save nearly four times more than single buyers, allowing them to build up a deposit much faster. If both save two-thirds of their disposable income, couples can set aside £1,383 per month, compared to £363 for solo renters.
How Long Does It Take to Save for a Deposit?
The difference in savings potential between solo buyers and couples is stark. On average, it takes couples just over three years to save enough for a deposit. In contrast, solo buyers would need more than 13 years to reach the same goal. This ten-year gap highlights the financial challenges faced by those who are looking to buy a home on their own.
However, despite these hurdles, there has been a noticeable increase in the number of single buyers entering the property market. A recent report showed a 60% rise in solo first-time buyers from 2022 to 2023, demonstrating that many are still determined to achieve homeownership, even if it takes longer.
Making Homeownership More Accessible for Solo Buyers
While it’s clear that solo buyers face unique challenges, there are options available that can help make homeownership more achievable. Shared ownership schemes and government incentives, can help reduce the size of the deposit needed. Additionally, joint borrower sole proprietor (JBSP) mortgages allow family members or friends to contribute to the mortgage without being listed as co-owners of the property, helping to boost affordability.
Ultimately, while it may take longer for solo buyers to save for a home, many are finding creative solutions to overcome the financial barriers they face. With the right strategies in place, solo homeownership can become a more realistic goal for those determined to step onto the property ladder.
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