Pre Ramteke says saving for her first home is still out of reach, even though she pays about £900 a month in rent before bills and believes the monthly instalments would be similar. The government is expected to give more details of its proposed Your First Home scheme in this week's Budget.
She moved to the UK from India in 2021, completed her studies in London and later moved to Rugby. Ramteke said: "Sometimes I do think that I'm trying to chase a dream that's going further and further away".
Pre Ramteke and the deposit
Ramteke said the deposit is the main barrier, not the monthly payment. "We know that if we buy a property, the instalments are going to be the exact same as the rent is right now. But the deposit is what is the biggest challenge for us," she said.
She estimated it could take three to four years to save enough for a deposit on a typical three-bedroom home. That timetable sits alongside a market where the average interest rate on a new five-year fixed mortgage deal has hit 6% for the first time in three years.
Zunara Tariq on support
Zunara Tariq, an estate agent, said affordability remains one of the biggest issues facing buyers. "It's a really tough time to save for a deposit. Even people who are on [big] salary jobs are finding it really hard," she said.
Tariq also said: "Affordability is a massive thing that we've seen at the moment, and cost of living and affordability work hand in hand." She welcomed government support, but added: "Any support available is positive support in the right direction, but it may not always be practical and it isn't always suitable for every first-time buyer."
Budget and Your First Home
The Your First Home scheme is aimed at helping more first-time buyers onto the property ladder, and the Budget is the point at which the government is expected to set out more of the detail. For buyers like Ramteke, the main issue is not the monthly commitment after purchase, but getting together the upfront deposit while rent, living costs and mortgage rates remain high.
That leaves the practical question for first-time buyers focused on the rules of the scheme itself: who it will cover, and how much help it will offer when the Budget is announced.
