The average age of a first-time buyer is set to fall around six years thanks to Help to Buy 2, according to research from conveyancing service myhomemove.
It currently takes the average first-time buyer eight years to save a 20% deposit, but they could save a 5% deposit in as little as two years.
The average first-time buyer is currently 33 years old, its data shows, but this could now drop to 27 years old.
Doug Crawford, chief executive of myhomemove, said: "Most mortgage lenders currently require borrowers to have a 20% deposit. That is the equivalent of £36,000 on the typical first-time buyer property, which our figures show costs £180,000. This is a vast amount of money which, according to industry research, will take an average of eight years dedicated saving to achieve, with relatives often being called upon to help top up the balance.
“Following the second phase of its Help-to-Buy, we predict that the average age of a first-time buyer will drop by up to six years, to 27, as saving for a 5% deposit could take as little as two years.
"And the Bank of Mum and Dad may be able to take a break, as the government steps in to guarantee the mortgages.”
But other analysts have warned that the government-backed scheme could backfire on first-time buyers.
Perran Moon, marketing director of Decision Insight Information Group, said first-time buyers shouldn't just consider whether their mortgage is affordable now, but whether it will still be affordable in three to five years.
"For first-time buyers it is clearly tempting to grab the deal now, perhaps to escape the parental home and be independent. Money is cheap at the moment, but buyers have to go into these transactions with their eyes open and a view on where rates are likely to be in the medium term."
TUC general secretary Frances O’Grady said the scheme will do to more to help sellers than buyers. “This is not so much Help to Buy as Help to Sell, even for those selling £600,000 properties beyond the dreams of most first-time buyers.
“First-time buyers are desperate to get a foot on the housing ladder and deserve help, but this scheme offers loans with a built-in pay-off for the Chancellor in a way that will push up house prices. It’s good for sellers, but poor value for buyers. “And worst of all it will not build a single extra affordable home – the only long-term solution to our housing crisis.”
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