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Young homebuyers willing to make sacrifices

Young homebuyers willing to make sacrifices

Category: Mortgages

Updated: 11/02/2014
First Published: 04/02/2014

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Trying to get on the property ladder can be a struggle for a lot of prospective homeowners. Saving enough for the deposit as well as the various fees and additional costs involved can seem like a never-ending battle, with strict budgeting being the only option.

That's why it's encouraging to see that so many first-time buyers are actually willing to make sacrifices to reach their goal. Research from the Post Office has revealed that, of the young non-homeowners hoping to get on the property ladder in the immediate future (36% of 18-34 year olds surveyed), a lot are willing to compromise to take that first step.

The annual Post Office Buying Habit Report found that over half (51%) are willing to forego nights out at the weekend while 57% will say no to takeaways, and 50% will make their own lunches for work and won't go to restaurants or bars.

Other sacrifices include not buying new clothes or shoes (47%) and even cutting back on the weekly shop or foregoing holidays (both 43%), just showing how much young buyers are willing to cut back.

Many are realising that they'll need to make compromises in order to reach their goal too, with 44% accepting that they might need to buy a property that requires further work and 26% realising that they might need to live further away from family than they'd like.

John Willcock, Head of Mortgages at Post Office, commented on the latest report:
"For many people owning their own home is a dream they are determined to make a reality, and our report highlights the lengths some will go to.

"While older generations are likely to have purchased a home at a young age, today's 18-34 year olds find themselves in a very different position; counting every penny in order to acquire those essential property pounds.

"Since the recession in 2008, people have taken extra steps to save money for a deposit. However, the launch of the Government's Help to Buy scheme and a raft of affordable loans on the market look to have rallied optimism amongst first-time buyers."

It's the Help to Buy scheme that has no doubt fuelled the number of first-time buyers able to enter the market, and with mortgage rates at record lows it's a great time to get on board.

What Next?

Find out more about Help to Buy

Read our first-time buyer guide to getting on the housing ladder

Compare First Time Buyer mortgage rates to find the best deals

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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