Recent research by Compare My Move shows that, on average, Millenial women across the UK must save for an additional eight months compared to their male counterparts if they’re to save enough money to get onto the property ladder, thanks to the gender pay gap.
The report based its findings on the average wage that a
It assumed that they were currently renting a room in a shared house and took into account realistic living expenses including food, travel and socialising.
It assumed that people were looking to buy in the area that they currently lived, needed a 10% deposit, and that they were purchasing as a single person. It then compared the average living costs, salaries and house prices in 51 of the largest towns and cities in the UK.
The report’s findings
The report found that the gender pay gap meant that women were able to save £100 less per month than their male counterparts.
This means that in thirteen of the largest towns and cities, they need to save for at least an extra year. It is in only six of the largest cities that there is a difference of three months or less.
The worst places for women
The difference in saving time is particularly noticeable in areas where house prices greatly outstrip wages. Perhaps surprisingly, London wasn’t the worst area. Cambridge, Oxford and Slough came out ahead of London.
In Cambridge, a single woman should expect to save for an additional three years and ten months, making a total time to save a 10% deposit eleven years and nine months. In Oxford, it’s an extra three years, and two years in Slough. London came in at fourth place, with a difference of one year and ten months.
The best places for women
In only six places across the UK are women able to match their male counterparts’ deposits in three months or less. Of these, four are in Scotland and two in Wales.
Dundee tops the list with an average of just one month’s difference. Aberdeen and Glasgow follow at two months, and Swansea, Newport and Edinburgh all come in at three months.
Compare My Move’s comments
Commenting on the report’s findings, Compare My Move Co-founder Dave Sayce said: “Our latest research shows the struggle faced by first-time buyers to get together a deposit is intensified by the gender pay gap.
“Females are most affected in areas of high living and renting costs, where the expendable income available to young savers is seriously squeezed. When coupled with high house prices, the pay gap compounds the issues faced by all first-time buyers.
“When the average female can put away £100 less than the average male a month, it’s easy to see how savings are affected. In the worst area, females have to save nearly four years longer than their male counterparts, causing them to save for well over a decade.”