First-timers make sacrifices for first home

Many first-time buyers are willing to forgo social lives, holidays and living in a trendy area to land their first home, a report by the Post Office has revealed.

More than a third of non-homeowners between 18 and 34 were hoping to get on the property ladder last year.

Over half of those polled said they were happy to stay in over the weekend to save money for a deposit in 2012 and 2013.

Overall however the compromises young people were willing to make fell slightly in 2013 from the year before.

John Willcock, head of mortgages at Post Office, said: “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. 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.”

Despite the positives, those with no intention of buying doubled to 10% in 2013 from 2012.

More young people were willing to buy property that requires additional work in 2013, up 4% to 44%.

Contrastingly location is more of a priority, as 35% were not willing to sacrifice area compared to 38% in 2012, while in London only 25% were willing.

Some 30% of young women were driven by the desire to settle down, while 29% of young men saw property as a financial investment.

Peter Lawrence at Lawrence Rand said: “Saving for one’s first property has always involved making compromises on spending. Help 2 Buy has eased the deposit burden but it is still a substantial requirement for most people.

However, the desire to get on the property ladder and own a home remains strong and we are seeing many more first time buyers looking to buy in 2014.”