"It's great to see people getting creative and trying different things, like saving with friends or family, moving to a cheaper area, or considering a smaller property, which can all make home ownership more attainable in today’s challenging market. Although it’s a shame people are being priced out of areas they grew up in"
- Liz Hunter - Money Expert
Research from the Skipton Group, compiled by Oxford Economics, revealed that the overall affordability score for buying a house in the UK is 22 out of 100 and that only one in eight renters can afford to buy a home in the area they live in.
Soaring rents, living costs and mortgage rates are leaving many households around the country struggling. With this in mind, the survey was commissioned to find out more about first-time buyers, such as whether buying a home was still a priority and how they plan to make buying a home more affordable.
Earnings have not kept up with house prices either. According to a report by the Building Societies Association, buying a home requires two above-average incomes, meaning it’s becoming increasingly difficult for first-time buyers.
36% are concerned about the lack of affordable housing available for first-time buyers. The ability to save for a deposit - without any help - is preventing 14% from getting onto the property ladder.
Shockingly, only 6% of people had no concerns whatsoever when it came to the affordability of buying their first home.
Buying your first home is a significant moment in your life. This will be the area that your family and children grow up in, so it’s important you choose the right place, not just for your wallet but for every aspect of your life. So how do you research an area before buying a home?
Here are some things to consider when researching new locations if you need to move to a new area:
Research, research research
Doing your research before committing to an area is so important. You shouldn’t just look at the average house price but the area in general and the amount of money you’d need each month to live there. You should also check out the crime levels in the area to see whether you’d be safe and comfortable. Many websites can provide you with detailed information about crime occurrence, the types of crimes and any trends to show if the crime rate is increasing or decreasing to help make your decision.
Visit data.police.uk and download a report for your area to see detailed crime statistics from the local police force. It’s a good idea to check out local papers as well as any local social media pages to see what’s happening. An area with high burglary rates or a lot of crime, for example, could increase insurance premiums.
Insurance costs
Location matters when it comes to insurance and can impact the cost. Before you look to buy a home in a new area, do a quick insurance quote with the house you’re looking at to find out what the potential costs would be if you were to move there and insure your home and vehicle. You’ll also want to figure out if it’s a flood risk area too. All of this will have an impact on your insurance premiums and any reduction in house price cost may be wasted if you have to pay more in insurance costs.
Understand and visit the local area
Learn more about the neighbourhood and the people who live there too, to figure out if it’s the best fit for you and your family. For example, if you’re a family, then you probably wouldn’t want to move to an area filled with elderly people who are retired, or on the verge of retirement, as there won’t be any kids for your children to play with or other families for you to connect with.
Similarly, if you’re a young couple who aren’t thinking about having children in the near future, but the area is full of families with young children, then it may not be right for you either.
If you can, try and visit the area at different times of the day to give you a real sense of what it’s like. What is it like on a busy weekend or on a Saturday night? What does the traffic look like? You could even speak to anyone local to find out what they think about the area as people who live there right now.
You’ll also want to have a look at the local amenities and make sure they’re right for you. Consider what shops, banks, GPs, dentists, good pubs and restaurants, the local library, theatres, leisure centres and parks are available and to see if they’re places that you’ll want to visit. Along with any places of worship, if that’s important to you.
Basically research everything you can about the local area as that’s where you’ll be spending your time. An online search will be a great place to find information and reviews.
Commuting and public transport
If you’re looking to move out of the area that you grew up in, you’ll need to understand what it’s like to travel around the area you’ll be moving to. This, along with price, will be an important factor in your decision on which area to move to. Is there constant travel which could impact your commute to work or school, for example?
Or if you don’t have a car, what is public transport like and is it reliable? You’ll need to have a good understanding of all this before you decide to move as the features in the new area will need to fit your life and interests, not hinder them.
Check out local schools
If you have children or are looking to have children in the future, then checking out the local primary and secondary schools is really important. Do some research and find out which area offers affordable housing, along with schools with high SAT schools, good teachers and great Ofsted reports. The gov.uk or schools’ website should give you an overview of performance data.
You could also visit the school as that could help you see what it’s like in person and give you a chance to speak to some of the staff and possibly students. As there are boundaries for certain schools, you can check the local authority’s website to see the distances within which children got into your preferred schools last year.
Council tax costs and local authority planning
It’s also worth checking out whether there are any planned changes to the area that could have an impact on your decision to move. This could be improved transport links, a new leisure complex or a shopping centre. The local authority will also have details about council tax charges too so this could help you decide whether it would be affordable to move there or not.
Liz Hunter, Commercial Director at Money Expert said: “Despite the financial strain faced by many households, homeownership remains a significant aspiration for many. However, the escalating cost of living and rising interest rates have made this goal increasingly difficult to achieve.”
“It's great to see people getting creative and trying different things, like saving with friends or family, moving to a cheaper area, or considering a smaller property, which can all make home ownership more attainable in today’s challenging market. Although it’s a shame people are being priced out of areas they grew up in.”
“Nevertheless, the government must acknowledge the growing affordability crisis and take decisive action to support first-time buyers. This includes increasing the supply of affordable housing, expanding government assistance programs, and implementing policies that promote sustainable homeownership. With the recent change in government, there is hope that these measures will be prioritised and implemented to help individuals realise their dream of owning a home.”
