FIRST TIME buyers in the South West are among the slowest to get onto the property ladder with one fifth saving enough for a deposit in just one year.
New research by UK mortgage advice company firstmortgage.co.uk reveals the ideal home for first time buyers is a two-bedroom property (40%) with residents in the South West aiming to save an average deposit of £32,000. Although with 20% not knowing the average house price in their area, they maybe in for a shock.
One fifth of first time buyers revealed they did not have a fixed amount they saved each month to put towards buying their first home. But when asked what they were doing to achieve their savings goals, 25% reduced their eating out habits, 16% saved by not going on their holiday and some even moved back in with their parents (12%). Whereas for an average city break of £350 for a few days, those in the South West need to forgo 91 holidays for a weekend on the couch.
Although the South West is one of the worst areas for a first time buyer, the time saved varies according to location, with some regions saving up for 5 years and others just over 1 year.
The country’s super savers hail from Yorkshire (39%), Scotland (31%) and the South East (28%) who have saved in a year, while as a nation, it averages 3 years.
However, the nations’ slowest savers South West (41%), North East (36%) & London (25%) say that it would take them 5 years to put together a deposit, significantly longer than their counterparts.
First Mortgage spokesperson, David McGrail said, ‘It might seem harder than ever to get on to the property ladder in a world full of economic uncertainty, however it is possible if you want it. Our advice to first home buyers in this climate is to take advantage. With overseas travel limited, government support through the reduction of stamp duty, and less socialising, it is prime time to get your finances in order and create a plan to get your dream home.’
TOP FIVE TIPS FROM FIRST MORTGAGE EXPERTS:
- If you can, move back in with your parents and pay your usual rent into a savings account.
- Plan ahead with meals and cook from home, forgoing a £20 meal out a week can save you over a grand
- Cut back on holidays, look local to explore free and new places
- Get your takeaway caffeine habit under control and pack a coffee from home instead
- Be disciplined and set targets for weekly/monthly savings. Using products like Help to Buy ISAs* and LISAs help you save quicker by earning bonuses from the Government.