Research reveals cutback made by aspiring first time buyers in the UK
Would be first time buyers in the UK are making significant cutbacks across the board, including moving in with parents and taking a second job, with some even delaying having a family.
New research reveals that the top cutback for those saving for a home is luxuries, such as holidays, with 22% doing so while 17% cut back on household spending, according to new research from L&C Mortgages.
The survey from the mortgage advisor also found that 7% move in with parents to save for a deposit, the same number take a second job and 7% also delay starting a family while 4% delay getting married.
As house prices remain high and the ability to get on the property ladder still a struggle for many, the research found that owning a home is seen as more of a commitment among 18 to 34 years olds than those aged over 55 at 12% and 6% respectively.
The research also looked into who is making the biggest financial commitment when it comes to saving for a deposit. Some 9% of home owners in a relationship said their partner or spouse paid the entire deposit while 18% paid it fully themselves. When looking at the gender split of who puts up the cash for a home, 26% of men paid all of the deposit for a home compared with 10% of women.
‘Our research shows that people are making cutbacks in order to buy a home. That extends beyond the reining back of household and luxury spending and is forcing some to hold back on major life changes such as starting a family or getting married,’ said David Hollingworth from L&C Mortgages.
‘Buying with a partner will certainly be one of the biggest financial commitments you can make. It’s therefore crucial to think clearly and plan, especially as home ownership is so entwined with the long term goals of marriage and raising a family,’ he added.