Many first time buyers (FTBs) are not purchasing homes in the areas they initially start house hunting in, new research has found.
A survey by Post Office Money, and shared by Mortgage Introducer, revealed that almost two-thirds (63 per cent) of FTBs in the UK end up changing the location of their property search due to affordability constraints.
On average, the organisation found that FTBs will buy somewhere that’s 5.2 miles – or 29 minutes – away from where they initially looked.
Speaking to the news provider Chrysanthy Pispinis, director of Post Office Money, commented: “One element of the house hunt that most buyers will need to contend with is finding an affordable area to invest their hard-earned money in.”
Overall, 57 per cent of UK properties are considered to be affordable for FTBs, however this falls dramatically in some areas, most notably London, where that percentage is just 26 per cent.
But the expense of buying a home doesn’t stop when you’ve put a deposit down and had an offer accepted. There is a wide range of services that you’ll need to pay for when you come to purchase your own home, from financial advisors to help you arrange your mortgage to conveyancing solicitors.
And, of course, there’s the moving day itself. This, however, you may feel happier to tackle alone, in which case make sure you’re properly prepared. If you have bulky furniture to move into your new home, invest in some furniture gliders to make it a lot easier to move it out of your current abode and to position it in your new property.
Hiring a van and roping in some friends to help with the heavy lifting could actually make your moving day a lot of fun, so this is one area where you could save some cash.
It would appear that not being able to afford a home in the area they initially targeted isn’t putting FTBs off from getting on the property ladder. In October last year, research from UK Finance showed that there was a growing number of FTBs entering the country’s property market.
The firm noted that in August of 2018, the level of FTBs in the market was at its highest since June 2017.
Year-on-year a two per cent increase in FTBs was recorded, while lending climbed by 5.2 per cent in the same period.
When looking for a home to buy, 20 per cent of FTBs told the Post Office Money survey that they’d prioritise being close to work. For those who don’t want to compromise on location, it may help to do some planning to ensure they have a large enough deposit for a property in their chosen area.
Post Office Money recently launched an online tool designed to help prospective buyers plan their saving to ensure they build up enough of a deposit to buy in their chosen area. The tool looks at affordability in the area specified by the buyer, and then calculates a savings plan.