In the long run, buying a house is less expensive than renting and most of us would agree that buying a house is worth the wait. However, with a combination of reduced savings and house prices almost doubling in the last decade, the average first time buyer is now aged 35.
A high purchase price and deposit are the barriers that prevent most people from buying their ideal home, but when it comes to buying a house there are some things that can seriously affect the price. Whether you compromise on location, property size, decor or outdoor space, you still need to be comfortable and happy in your new property.
If you were a first time buyer, what would you be prepared sacrifice to get on the housing ladder?
According to a recent survey of people who bought property in the past two years, 92% of buyers compromise on the location of their first home so that they could get on to the property ladder. Of these, home buyers moved an average 5.2 miles from where they originally planned to buy, although 25% moved up to two hours away.
20% of people chose the location of their new home by its proximity to work, or family and friends but, despite compromising, two thirds of home buyers didn’t regret their decision to live in an area that they might not initially have chosen.
Property size and outdoor space
New buyers were less happy to concede on the size of their new property with factors such as house size, outdoor space and parking high on the list of importance.
Only 10% of first time buyers were prepared to take on a property that required structural work. First time buyers, used to living in a home with high standard fittings and decor, can often be blinded by seventies wallpaper or a kitchen that needs updating.
A good independent Chartered Surveyor can advise on the potential work needed when buying a property, enabling buyers to negotiate on the purchase price and ensure that they have sufficient funds available to carry out the work.
One in five buyers wanted to purchase their first home with another person, having met a long-term partner, and 11% started saving for a deposit when they were a child. Despite this, the average age of first time buyers is now 35 – up from 28 ten years ago, and just 24 in the early 1960s.
In 2018, half of first time buyers surveyed by the Council of Mortgage Lenders estimated that it would take ten years just to save up the average £27,500 required for the average deposit to get on the property ladder.
More than half of buyers turned to the bank of mum and dad or friends for help, while 27% raised the deposit alone, 21% saved with the aid of their partner and 10% took out a mortgage that didn’t need a deposit.
High property rental costs were the main reason for wanting to invest in property. High living costs are consistently one of, if not the biggest, overheads to contend with as many simply cannot save whilst paying all the bills and rent. The UK housing market remains a challenging environment and it is difficult for many to begin that all important ascent on the property ladder.
Once you have scrimped and saved to acquire the deposit you need, obviously you do not want to compromise to the detriment of your own happiness; the key is finding a balance between what you can live with and what is unbearable to contemplate.
Building surveys involve a detailed inspection of buildings, and the preparation of a report that is designed to address the specific needs and interests of the client.
Appointing an independent Chartered Surveyor will also be valuable when you are negotiating a price or trying to obtain that all important mortgage. The extent of inspection and method of reporting in a Building Survey is agreed when you instruct a Chartered Surveyor to proceed. Details can include a focus on services or environmental aspects, and provide guidance and detailed comment on individual defects, the cost of repairs and any other aspects of concern.
A Building Survey is relevant to all properties, but is particularly informative on older structures, “Listed Buildings”, properties that have been extended, and flats and buildings with leasehold title.