According to a recent study by Zoopla, 42% of adults aged 18-39 who don’t own a home say they’ve given up on the idea of buying one in the next ten years. Perhaps unsurprisingly the three main reasons cited for these feelings include the cost of living crisis, increasing house prices and higher mortgage rates.
Although this is not a particularly positive statistic it is important to remember that there is a large proportion of this age group that do believe that they will purchase a property. In fact 21% said they will ‘definitely’ be able to afford a home in the next decade, 14% are already planning or in the process of buying and there are a number of avenues that can be explored to help with that initial step onto the property ladder.
We may have dreams of our first home being ‘perfect’ however this is not often the case so consider where you might have space to compromise on slightly in order to help secure your property. Could you sacrifice the spare room and invest in a sofa bed for the living room? Or perhaps your search area could increase a little to include a larger distance and increase your walk to the station by a few minutes.
You may also want to think about buying with a friend or relative to reduce costs. Although it would be a joint commitment getting legal advice and signed documents can make the process quite straight forward.
Consider the type of home you are purchasing are you looking for a new build, character home or perhaps a fixer upper? A fifth of those surveyed by Zoopla said they would be open to buying a near-derelict home and doing it up whilst 19% would consider building a home themselves.
Its important to keep up to date with current buying assistance schemes that are designed to help people get on the ladder, such as shared ownership or 95% mortgages. In fact, knowledge is key so its worth getting as much information as you can to better understand your search and your position; whether that be speaking to mortgage brokers or investigating new areas and local transport.
Of those who are planning to buy, or are in the process of doing do, 85% of those surveyed suggested they made financial sacrifices to do so. From not going on holiday to socialising less consider where you may be prepared to prioritise your home purchase with the view to increase your deposit or budget.
Calling local estate agents and registering your details will ensure you are kept up to date with any new properties coming to the market that might suit you. Additionally if you let them know which requirements you have might have flexibility on they are sure to keep you front of mind for anything relevant.
Written by director James Hunt; Durden and Hunt Ongar
