The gender pay gap is making it harder for young women in Blackpool to get on the property ladder.
New research shows it takes the average female first-time buyer in the resort an additional four months to save for a 10 per cent deposit over their male counterparts. The gender pay gap means females in Blackpool have around £118 less to put into savings each month.
These findings are a result of analysing the average salary and living costs for 22-29-year-olds across 51 of the largest towns and cities in Britain. The research found Cambridge had the highest gap, with females needing to save for an additional three years and 10 months. In the capital, female Londoners must save for an extra year and 10 months for their deposit.
There were no towns where the savings gap was neutral but Dundee, Glasgow and Aberdeen all had a gap of less than two months.
Comparison website Compare My Move explored the saving journey of young men and women renting in areas they are looking to buy a home. The research uses living costs associated with leading a normal life including food, travel, rent and socialising. Researchers used regional wage data for 22 to 29-year-old male and females and the latest official first-time buyer house prices to explore how the gender pay gap is causing hardship for first time buyers.
In 13 of the largest towns and cities in Britain, female first-time buyers must spend an extra year or more saving compared to their male counterparts. In areas where house prices greatly outstrip the wages of millennials, all first-time buyers find it particularly difficult to get on the property ladder. The pay gap means a dire situation is compounded for female first-time buyers.
According to the research, female millennials face a longer save in all 51 of the towns and cities analysed by Compare My Move, although six areas can be deemed the best of a bad situation. In these areas, females will “only” add three months or less to the time spent saving.
Of these areas, four are found in Scotland – Dundee, Aberdeen, Glasgow and Edinburgh – and two in Wales – Swansea and Newport. These areas are the closest to equality on account of a lower regional pay gap and lower-than-average rents, house prices and living costs.
Dundee tops the list as an area which approaches equality of savings, with females having to save “only” an extra month more than their male counterparts. This is down to the lowest pay gap on the list, coupled with the highest level of expendable income for millennials. Low rents and a low cost of living allows both male and females in Dundee to save the largest amount each month, more so than areas with better pay.
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 4 years longer than their male counterparts, causing them to save for well over a decade.”
For more on the research, visit www.comparemymove.com/house-removals/gender-pay-gap