In a survey polling 1,000 people across England and Wales who are actively saving to buy their first home – dubbed first time triers by Wales’ largest building society - results showed that a coffee-chain hit and smartphone are more important than putting extra money aside for their first property.
With the average asking price of a home for first time buyers in the UK at £169,414, a 5% deposit would be £8470.70, which could be reached in 12 months if a couple put away £353 each per month. This may seem like a struggle to save for but by making some small changes Principality has found that the dream of owning your own home could soon be a reality.
The survey showed that people are already saving £286.51 per month for a house deposit, but are still splashing out an average of £218.38 on perceived ‘necessities’ while they wait in vain to own their own piece of the market.
Smartphones, beauty treatments and satellite TV were named as the hardest luxuries to give up, closely followed by a regular coffee shop fix (with 55% not wanting give this up). 59% of people would give up takeaway food in a heartbeat to get on the ladder, followed closely by taxis and dining out. If respondents were to give up all three, research showed it would add an extra £62.41 to their monthly savings.
Regular jet setting is also high on the list of non-negotiables, with 56% claiming they would never give up holidays to put their roots down in an owned property a lot sooner.
Principality’s customer director, Julie-Ann Haines, said on the findings: “We know that saving for a deposit can seem like a huge burden, which many first time buyers feel they can’t afford but by making some minor changes to their spending habits, they could soon realise their dream of becoming a home owner. By simply doing things like swapping a takeaway coffee for a flask of coffee from home each day or by cutting back on the city breaks for a year people could soon have that deposit that they have longed for. A saving of £218.38 a month can make a huge difference when you are trying to reach your deposit.
We want to give first time triers all the information they need to help them get on the property ladder and own their first home. It can be one of the most rewarding moments of your life, giving you a place where you can seek the independence you’ve always wanted or finally start a family.
By simply cutting back on the everyday luxuries for a short time it will enable you to save more in the long run, and ultimately be on the housing ladder much sooner than anticipated.”
