Almost half of first time Sheffield buyers use lockdown savings to fund deposit
Nearly half of today’s first time buyers in Sheffield have put lockdown savings to good use by fully funding their deposit - compared to 40 per cent in 2016.
New research shows 48 per cent of first time buyers in the city have raised the full deposit on their own without help from other sources, although the bank of mum and dad will still help 33% to get on the property ladder.
The research by Purplebricks also says first time buyers in Sheffield are planning to put down an average deposit of £26,290 - almost the same as in 2016 at £26,969.
Rural areas are growing in popularity as 68 per cent of first time buyers now consider living there compared to 56 per cent five years ago.
As millions of home buyers bid to purchase a first property thanks to the Government’s newly launched mortgage guarantee scheme and the stamp duty holiday, the research from Purplebricks, the UK’s leading tech-led estate agent, reveals changes in behaviours and preferences.
The past five years has featured an increase in first time buyers who saved a deposit and got on the property ladder on their own.
Costs associated with commuting, holidaying and socialising drastically reduced in the pandemic according to Bank of England statistics. It left many consumers with more money and for those trying to buy property, these savings are being used.
A fixed rate mortgage is the mortgage of choice, with 33 per cent opting for this.
Although property prices have sharply increased in the past five years, first time buyers in Sheffield are planning to put down similar deposits to five years ago.
This may partly be due to the recent announcement of the Government’s mortgage guarantee scheme – which allows first time buyers to get on the property ladder with just a 5% deposit - meaning they can start their search with a smaller deposit.
Good transport links are still considered important with 51 per cent of first time buyers considering this a priority, an increase from 42 per cent in 2016.
New build homes are now favoured by one third of first time buyers in Sheffield, an increase from 2016 when they were sought by a quarter of first time house hunters. First time buyers are also more inclined to look for a home that is easy to maintain – 48 per cent said this compared to 42 per cent in than those in 2016.
Philip Price, Territory Operator for Sheffield at Purplebricks said, “With lockdown limiting consumer spending, those saving to buy their first property have been able to put more aside and we are seeing more first time buyers in Sheffield 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.
“There has been a big shift in buyer behaviour over the past 12 months. The trend towards agile working has enabled many potential buyers the freedom to look further afield, and consider properties in more rural areas as they are not as constrained by their commute.”
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