How are First-Time Buyers Saving For a Deposit? has been the question recently asked.
Did the Covid-19 pandemic stop first-time buyers with an ambition to get a foot on the property ladder?
For many, the pandemic hit harder financially.
But an enforced cut back on spending was a positive outcome for those with home buying goals, allowing them to save faster for a deposit.
New research from the Nottingham Building Society asked how are First-Time Buyers Saving For a Deposit and found that:
- Of those surveyed 19% plan to buy their first home in the next five years will have deposits saved this year.
- 32% said they would be viewing properties this year.
- Of the first-time buyers surveyed 8% have already started house hunting.
- The survey also found that 28% of prospective first-time buyers expect to start viewing properties within the next three years.
- 25% expect to view within the next five.
The remainder doesn’t yet know when they will be in a financial position to start viewing properties.
Those planning to buy their first home gave the top three financial sacrifices they have made to get into the position where this is a possibility.
- Spending less on clothes
- Spending less on eating out
- Cutting back on holidays
Iain Kirkpatrick, Chief Customer Officer at The Nottingham, said:
“The restrictions placed on people during the height of the pandemic saw many dramatically cut back on the amount they spent – from eating out, to buying new clothes and holidays.
“Although it has been a very difficult time, for many of those saving for their first home the reduction in their expenditure provided an opportunity to dramatically increase their deposit savings and move a step closer to owning their own home.”
If you plan to buy your first home within the next five years, what steps are you taking to save for your deposit?