43% of current FTBs have raised the full deposit for a property on their own, up from 29% in 2016, according to Purplebricks
Nearly half of today’s first-time buyers (FTBs) have put their lockdown savings to good use by fully funding their own deposit – compared to just under a third in 2016, according to new research from Purplebricks.
Its survey found that 43% of current FTBs have raised the full deposit for a property on their own without help from other sources, up from 29% in 2016, although the Bank of Mum and Dad will still help 31% to get on the property ladder.
Although property prices have sharply risen in the past five years, FTBs are actually planning to put down smaller deposits than their counterparts five years ago – with down payments falling from £32,954 in 2016 to £27,521 today.
This may partly be due to the recent announcement of the government’s mortgage guarantee scheme, which enables FTBs to get on the property ladder with just a 5% deposit.
The research has also highlighted significant changes in FTB priorities, with 68% saying they would consider living in a rural area now that working from home is an option, compared with 57% five years ago.
As more people work from home, good Wi-Fi is now more valued than ever. A property with strong Wi-Fi is now important to 41% of first-time buyers compared to 33% in 2016 – making it a bigger priority than proximity to good schools, pubs and cafes. Good transport links are still considered important with nearly half (48%) of today’s first-time buyers considering this a top priority, a rise from 41% in 2016.
New build homes are now favoured by one third of first-time buyers, a rise from 2016 when they were sought by a quarter of first time house hunters.
Susan Gregory, divisional sales director at Purplebricks, commented: With lockdown limiting consumer spending, those saving to buy their first property have been able to put more aside and we are seeing many first-time buyers funding their deposits independently. It is really encouraging to observe this growing trend for first-time buyers to finance their first property purchases under their own steam.