First-time buyers prepared to move more than 30 miles to get on the property ladder
A biannual study of 1,000 aspiring homeowners found 39 per cent are looking in neighbouring areas to improve their chances of securing a property that meets all their needs.
By compromising on location, those polled are hoping to afford a garden (66 per cent), a spare bedroom (53 per cent), an en-suite bathroom (48 per cent), a driveway (47 per cent) or a garage (44 per cent).
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Hide AdBut it’s not only financial reasons motivating potential homebuyers to look further away, with 38 per cent looking for more peaceful or serene surroundings, and 32 per cent wanting safer neighbourhoods with lower crime rates.
Aspiring first-time buyers in Wales are looking furthest afield, considering properties an average of 38 miles away, while those in London and the south east are prepared to move up to 33 and 37 miles respectively.
It also emerged that despite affordability challenges, buying a home is more important than ever for 79 per cent, with financial security the top motivator among 62 per cent of those.
Compromising is key
Brian Byrnes, head of personal finance at saving and investing app Moneybox, which commissioned the research, said: “Market volatility over the last few years has really highlighted how compromise is often the key to getting on the property ladder as a first-time buyer.
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Hide Ad"It's great to see how first-time buyers have been adapting to make their dream of owning a home a reality and we see this resilience and commitment every day among our customers.
“However, we also believe that more could be done to help first-time buyers navigate current market conditions with greater confidence.
"Interest rates and house price growth now mean that more people will struggle with affordability and so it’s never been more important to save a suitable deposit.”
The study also found 35 per cent of those surveyed feel optimistic about becoming homeowners, with 22 per cent of those even managing to save more than expected towards their deposit in the last six months.
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Hide AdUncertainty
Yet, the cost of living continues to impact disposable income for 57 per cent, making it harder for 51 per cent to save for a deposit alongside rising house prices.
According to the research undertaken by OnePoll, first-time buyers are now saving 18 per cent less towards their first home deposit than a year ago, down from £344 to £286 a month.
But 17 per cent are eagerly awaiting the General Election to see what support may be provided to aspiring first-time buyers by a new government.
Moneybox’s Brian Byrnes added: “As we enter the final weeks before the General Election, it is clear that more needs to be done to address housing supply and sustainably boost homeownership - without further inflating house prices.
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Hide Ad"However, many of the solutions needed are complex and will take some time to bear fruit.
“That is why we’ve been campaigning to future-proofing the Lifetime ISA, a hidden gem of a savings product that has supported a whole generation of first-time buyers, to buy their first home far sooner than would have otherwise been possible due to its 25 per cent government bonus on deposit savings of up to £4,000 every tax year.
“We believe first-time buyers deserve all the help they can get and so we are calling on the next government to futureproof the Lifetime ISA and help more people save more money towards their first home deposit.”
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