Compare My Move has explored how the gender pay gap affects millennials saving up for their first home. We looked at how long it would take young males and females to save up a 10% deposit in 51 of the largest towns and cities across Britain.
We found that millennial females must save an extra 8 months for their first home compared to their male counterparts. The research found it takes the average British female 3 years and 8 months to save a 10% deposit while renting, whereas it would take their male counterparts 3 years to save for the same house.
With a gender pay gap in every town and city we explored in the research, female first time buyers are certainly affected in every area of Britain. However, the severity of the effect is different between areas. From Cambridge, where females must save for an extra 3 years and 8 months, to Dundee, where females must save for “only” an extra month.
A Digital Marketing Executive based in Bristol, Faye has been saving while renting in Bristol over the last 3 years. She currently saves around £300 a month towards a 10% deposit. She believes she’ll be saving for another 3 years to reach her goal.
"I don't find it surprising that females will need to save for a longer time, however, I don't know anyone my age in Bristol, male or female, who will be ready to buy their first home in the next few years without additional help from their family"
Paid less? Save less. Our research found that the average female millennial has around £100 less to put towards their deposit each month than their male counterparts. This makes a huge difference in areas like Cambridge with high house prices and living costs. In areas like Dundee where living costs are low, the effect of the gender pay gap is lessened.
There are 13 towns and cities where females must save at least a year longer than their male counterparts.
Area | Avg 10% Deposit | Time to Save (Male) | Time to Save (Female) | Difference |
---|---|---|---|---|
Cambridge | £37,196 | 7 Years and 11 Months | 11 Years and 9 Months | 3 Years and 10 Months |
Oxford | £36,145 | 7 Years and 4 Months | 10 Years and 4 Months | 3 Years |
Slough | £27,146 | 5 Years and 11 Months | 7 Years and 11 Months | 2 Years and 0 Months |
London | £41,374 | 6 Years and 4 Months | 8 Years and 2 Months | 1 Years and 10 Months |
Brighton and Hove | £31,624 | 5 Years and 5 Months | 7 Years and 2 Months | 1 Years and 9 Months |
Crawley | £25,735 | 4 Years and 9 Months | 6 Years and 5 Months | 1 Years and 8 Months |
Reading | £27,496 | 4 Years and 10 Months | 6 Years and 5 Months | 1 Years and 7 Months |
Bristol | £25,935 | 5 Years and 1 Month | 6 Years and 6 Months | 1 Years and 5 Months |
Poole | £24,455 | 4 Years and 10 Months | 6 Years and 4 Months | 1 Years and 6 Months |
Manchester | £16,176 | 3 Years and 1 Month | 4 Years and 2 Months | 1 Years and 1 Month |
Northampton | £18,647 | 3 Years and 8 Months | 4 Years and 9 Months | 1 Years and 1 Month |
Southend-on-Sea | £23,313 | 3 Years and 6 Months | 4 Years and 6 Months | 1 Year |
Milton Keynes | £21,800 | 3 Years and 6 Months | 4 Years and 6 Months | 1 Year |
The research shows the struggle in many cities for renters saving to get on the property ladder. In areas where rent and house prices way outstrip the average wage, renters can spend more than a decade saving up the average deposit needed. These are the areas where savers gain the most from the Help to Buy equity loan, saving a huge amount of time and rent.
Area | Avg 10% Deposit | Time to Save (Male) | Time to Save (Female) | Difference |
---|---|---|---|---|
Dundee | £10,667 | 1 Years and 3 Months | 1 Years and 4 Months | 1 Month |
Aberdeen | £12,975 | 2 Years and 1 Month | 2 Years and 3 Months | 2 Months |
Glasgow | £12,136 | 1 Years and 8 Months | 1 Years and 10 Months | 2 Months |
Swansea | £13,177 | 2 Years and 3 Months | 2 Years and 6 Months | 3 Months |
Newport | £15,610 | 2 Years and 7 Months | 2 Years and 10 Months | 3 Months |
Edinburgh | £21,442 | 2 Years and 11 Months | 3 Years and 2 Months | 3 Months |
Compare My Move focused on savers in their twenties renting in the town or city in which they want to buy their first home. We selected the 51 of the largest towns and cities in Britain. We used median regional wages for male and female 22 to 29 year olds, and worked out takehome salary by deducting pension contributions, student loan repayments, and tax.
We sourced living costs that reflect a normal lifestyle, including food, travel and bills, but also socialising and entertainment. We added average monthly rent for one room in the town or city, and worked out the disposable income of both male and female savers.
We then worked out the time taken to save up a 10% deposit for the average first time buyer home in the area.
Contains HM Land Registry data © Crown copyright and database right 2019. This data is licensed under the Open Government Licence v3.0.
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