Would you settle for second-best in the quest to buy your first home?
The latest First Time Buyer Opinion Barometer from Your Move has highlighted that first-time buyers are making large compromises on quality and serious cutbacks to save for a home.
In June 2015 there was 21,100 first-time buyer transactions and the average property price was £154,041 with the average deposit standing at £25,926. The most expensive place for first-time buyers was London, with an average purchase price of £277,871 compared to the Yorkshire & Humber where the average price was £112,597.
The most alarming point is that 20% of first-time buyers are prepared to purchase a property with no electricity and 19% were willing to forgo plumbing and central heating. The biggest cut backs are holidays and new cars, first-time buyers are instead saving this money to put towards their deposit.
Adrian Gill, director of estate agents Your Move, comments: “As demand in the property market remains strong, first-time buyers are willing to accept a home in less-than-perfect condition.
“While the stats seem alarming at first glance, they’re a good sign for the housing market overall. The figures show that most would be first time buyers haven’t given up on the dream of property-ownership. Instead, they are sensibly adjusting their expectations and preparing themselves for some of the short-comings that may be present in a first home. Indeed, it may even be the case that some first-time buyers actively select properties with faded décor or faulty kitchens, judging that the reduction they can secure on the asking price is greater than the cost of any required renovation work.
“First time buyers are also still taking advantage of Government backed schemes, such as Help to Buy, while they last. Home buying incentives are not going to be around forever – especially now the property market is beginning to stand on its own two feet. First time buyers are more inclined to purchase a home now with support – even if it doesn’t match exactly to their specifications – than hold out for a more ideal property and risk the incentives expiring.”