Posts with tag: saving for a deposit

First Time Buyers Won’t Sacrifice Luxuries to Buy a Home

Published On: September 7, 2015 at 12:18 pm


Categories: Landlord News

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First time buyers are not prepared to sacrifice certain luxuries in order to save a deposit and buy a home, according to recent research.

In a survey of 1,000 people in England and Wales saving for their first house, by Welsh building society Principality, many said that smartphones, satellite TV and holidays are all things they are unwilling to give up.

First Time Buyers Won't Sacrifice Luxuries to Buy a Home

First Time Buyers Won’t Sacrifice Luxuries to Buy a Home

The average asking price of a starter home in the UK is currently £169,414 and the building society calculates that if a couple saves £353 each every month, they could save a 5% deposit of £8,470 in just a year.

The study found that although aspiring first time buyers save an average of £286 per month for a deposit, they are still spending around £218 on what they call necessities.

Less than half of respondents (42%) would be willing to sacrifice satellite TV, just 37% would give up beauty treatments and just over one in ten (12%) said they are prepared to give up their smartphone.

Over half (56%) would not give up regular holidays in a bid to save more money.

However, almost two thirds (59%) said they will give up takeaways and 48% would stop eating out and using taxis. If respondents gave up all three, research indicates that they could save an extra £62.41 per month.

Customer Director at Principality, Julie-Ann Haines, comments on the findings: “We know that saving for a deposit can seem like a huge burden, which many first time buyers feel they can’t afford, but by making some minor changes to their spending habits, they could soon realise their dream of becoming a homeowner.

“By simply doing things like swapping a takeaway coffee for a flask of coffee from home each day, or by cutting back on the city breaks for a year, people could soon have that deposit they have longed for. A saving of £218.38 a month can make a huge difference when you are trying to reach your deposit.”

She continues: “[Getting on the property ladder] can be one of the most rewarding moments of your life, giving you a place where you can seek the independence you’ve always wanted or finally start a family.

“By simply cutting back on the everyday luxuries for a short time, it will enable you to save more in the long run, and ultimately be on the housing ladder much sooner than anticipated.”1


The Young Rely on Inheritance to Buy Property

Half of parents do not think their children will be able to buy their own home without inheritance money, a study has found.

The lack of young people entering the property market has been caused by spiralling house prices and a shortage of affordable homes.

Homeownership among the young has dropped substantially in the last few years, as young professionals have to rent for longer.

Research has revealed that 49% of parents whose children have not yet bought a property believe that their offspring will depend on inheriting family money.1

The survey also found that one in six of those aged 25-34 who do own a house used inheritance from a relative for the deposit. This is significantly higher than the one in 20 over-55s who used inheritance to purchase their first property.1

The Young Rely on Inheritance to Buy Property

The Young Rely on Inheritance to Buy Property

One in ten of those who relied on inheritance said that it made them feel inadequate and dependent on others.1

Homeownership among 25-34-year-olds has decreased from 59% in 2003 to 36% in 2013, according to the English Housing Survey.1

Housing charity Shelter ordered the survey. Its Chief Executive Campbell Robb says: “No parent wants to think the only way for their children to ever own a home of their own is through losing someone they love.

“It’s a tragic consequence of our housing shortage that, even when they are working hard and saving what they can, a generation of young adults have no choice but to rely on the prospect of inheritance to have any hope of buying their first home.

“The failure of successive governments to build anywhere near enough affordable homes is leaving millions of young adults facing a lifetime of uncertainty either in expensive and unstable private renting, or stuck in their childhood bedrooms well into adulthood.”

Shelter has called on the next government to “make a real and lasting commitment to building the affordable homes we desperately need.”1

One 28-year-old who is struggling in this housing crisis is Richard Hill of Colchester, Essex, who works at the University of Roehampton. He joins thousands of young people living with their parents because they cannot afford to rent in London.

Richard explains: “It takes me nearly two hours to get to work and costs hundreds of pounds each month in travel.

“While I don’t want to still be living at home by the time I turn 30, it looks like it might be my only option. Even though I save every penny I have and cut costs wherever I can, it never seems to be enough with today’s house prices.

“I hate the thought that losing the people I love most in the world could be the one chance I’ll have to buy my own home.

“It’s ridiculous that so many people in my generation simply can’t buy without inheritance or a huge deposit from the bank of mum and dad. There’s got to be a better offer on the table for hard-working young people.”1

These shocking facts arrive at a time when asking prices are higher than ever. We revealed yesterday that a lack of sellers in the market is forcing house prices up. Read more: /average-property-prices-at-record-high-of-over-286000-in-april/


Top Ten Sacrifices of Aspiring Homeowners

Published On: March 6, 2015 at 2:12 pm


Categories: Landlord News

Tags: ,,

Although the Help to Buy scheme has been fairly successful, owning a home is still far out of reach for many 18-34 year olds.

One of the hardest things to conquer is raising the substantial deposits required for purchasing a property. What House? has revealed some of the most common steps taken by aspiring buyers to save the thousands of pounds that they need to get onto the housing ladder.

Top Ten Sacrifices of Aspiring Homeowners

Top Ten Sacrifices of Aspiring Homeowners

The Top Ten Sacrifices of Prospective Homeowners1

  1. Cutting down on socialising and meeting friends – 47%
  1. Going without a holiday – 44%
  1. Not eating out – 42%
  1. Taking on another job or extra shifts – 34%
  1. Cutting back on essentials – 29%
  1. Giving up expensive hobbies – 21%
  1. Walking instead of using the car or public transport – 21%
  1. Moving back in with parents – 19%
  1. Selling possessions – 14%
  1. Putting a wedding on hold – 7%