The Money Charity has calculated that, saving at the average rate seen during Q2 2020, out of an average UK income, the time to save for a first-time buyer (FTB) deposit is six years.

The Money Statistics report for September 2020, however, found that saving for an FTB deposit at average rates and income would take an average of 20 years.

Households saved 28.1% of their income during the peak furlough and lockdown period from April to June 2020.

pensions deposits

Ipswich responds to idea that pensions could boost FTB deposits

Meanwhile, the average first-time buyer house price increased by 2.1% in the year to August 2020, compared to an increase of 3.4% in the year to June.

In August 2020, the average total debt per UK household, including mortgages, was £60,526; this is up from £60,403 in July.

Total net lending to individuals and housing associations by UK banks and building societies rose by £3.082bn in August 2020, over revised figures for July 2020. Net mortgage lending rose by £3.18bn in the same month.

Michelle Highman, chief executive of The Money Charity, said: “Increased savings rates and reduced levels of reliance on credit are always to be welcomed and suggest how many financial mindsets have managed to shift in the current unusual circumstances.

“However, the heavy losses of income and resilience for so many point towards a stark contrast between the haves and have nots.

“Positive signs cannot truly be celebrated when they do not point to the UK finding its way onto a more sure-footing when it comes to financial resilience, our collective ability to deal with the unusual and unexpected.

“Clearly the pandemic is far from over, but the moment for strong and decisive planning and action is now.

“It is essential that this time is used as a reset button to fully integrate strong, practical and engaging financial education into our schools, as well as to fix the broken systems and unfair practices which hinder people from achieving financial wellbeing in their lives.”