Luxuries come before saving for a deposit--apparently!
Smartphones, satellite TV and holidays were among the things first-time buyers said they would not be prepared to give up in order to save to get on to the property ladder.
In a recent survey by a Welsh building society of 1000 people across England and Wales who are saving for their first home many also said that beauty treatments and visits to the coffee shop were things they were unwilling to give up.
The average asking price of a home for first-time buyers in the UK currently stands at £169,414 and a 5% deposit of £8,470 would be reached in a year if a couple each saved £353 every month, according to the building society. The survey found that while people were on average saving £286 per month for a house deposit, they were still spending almost £218 on what they believed were ‘necessities’. Less than half (42%) said they were prepared to give up satellite TV, only 37% would sacrifice beauty treatments and just over one in ten (12%) said they would be prepared to give up their smartphone. Regular holidays were also non-negotiable, with more than half (56%) admitting they would not give up trips away to save.
However, nearly two thirds (59%) said they would be willing to give up takeaways, while 48% said they would stop eating out and taking taxis. If respondents were to give up all three, research showed it would add an extra £62.41 to their monthly savings.
We certainly believe that getting on the property ladder can be one of the most rewarding moments of your life, creating independence and place of your own.. By cutting back on the everyday luxuries for a short time it will enable young prospective buyers to save more in the long run and ultimately be on the housing ladder much sooner than anticipated. However, we also know there are many claims on income these days, such as just “living” and perhaps planning for a pension, so it isn’t easy.