An investigation into would-be first-time buyer spending habits has uncovered the luxuries that many refuse to give-up in order to save for their initial home.
A Principality Building Society survey of 1,000 people in England and Wales who are actively saving for their first property showed that coffee from a leading chain and having the latest smartphone were more important than putting many aside for a dwelling.
The average asking price of a home for first time buyers in the UK stands at £169,414, meaning just a 5% deposit would be £8,470.70. This could be reached in a year if a saving couple put away £353 per month over the period.
Of course, saving is not easy but Principality suggest that with only a few changes could see many turning the dream of owning a home into a reality.
Data from the report indicates that people already save an average of £286.51 per month for a house deposit. However, a further £218.38 was spent on luxuries perceived a ‘necessities.’
Smartphones, satellite television and beauty treatments were found to be the hardest luxuries to give up, followed by a regular coffee shop fix. Despite this, 59% of people said that they would give up takeaway food to get a foot on the property ladder.
56% of people said however that going on holiday was non-negotiable and they wouldn’t sacrifice this in order to get onto the property ladder.
Potential first time buyers not doing enough to save
‘We know that savings 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,’ said Principality’s customer director, Julie-Ann Haines. She feels that, ‘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.’
Haines went on to say that, ‘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,’ she concluded.