Saving hacks to get you onto the housing ladder
Surging property prices mean it is vital for first-time buyers to have a good deposit. VICKY SHAW gets some helpful tips
UK’s housing market has been booming in recent weeks. According to Office for National Statistics (ONS) figures, the average UK house price leapt by £20,000 in the year to February.
Property website Zoopla calculates nearly £150 billion-worth of home sales took place across the UK in the first 15 weeks of this year, that’s a significant increase compared with 2020 and 2019.
And according to NAEA (National Association of Estate Agents) Propertymark, one in six (16%) homes sold in March went for over the original asking price – the highest proportion since 2014. While this may be great news for existing homeowners, it makes life tougher if you’re trying to get on the property ladder. Although encouragingly, more than a quarter (27%) of sales in March were made to first-time buyers – the highest figure since June 2020, according to NAEA Propertymark.
And to give first-time buyers a new lifeline, a range of new 5% deposit mortgages have just been launched by several big highTHE street lenders, as part of a UK Government-backed scheme.
If you’re facing the challenge of buying a home and need to cut back on your outgoings, here are some suggestions from Andy Barr, personal finance expert and cofounder of online price tracking website alertr.co.uk...
1.Stick to a budget
It can be hard, but try to stick to a budget each month by working out what you can live on, and then save the rest. If you put the money you want to save into a separate account straight away, you can act as if it was never there – so what you are left with is what you have for the month and that’s it.
It will also be good practice for when you get your own place and adjust to making regular mortgage payments and other bills.
2.Ditch
While it’s tempting to book something to look forward to, think about putting the money towards your new home instead. Once you are settled in, book a holiday to celebrate.
holiday plans for now 3.Shop around for cheaper deals on your current bills
If you are renting somewhere or already paying bills, make sure you are shopping around for the best deals. Savings can always be made so it’s worth comparing prices.
4.Banish brand names from your shopping list
When you do your weekly food shop, make sure you write a list, rather than trying to wing it. Check in your kitchen cupboards to see what you might be low on and only buy what is on the list. Also, try to eat before you leave, as going shopping whilst hungry will only lead to impulse buys. If you can, also try to buy unbranded items and this will save you a lot in the long run.
5.Consider moving back in with your family, if you can
If you’re renting and your savings aren’t growing, it may be worth considering moving back into the family home for a while, if that’s an option. Hopefully your parents won’t charge you the same that you’d normally pay to rent!
6.Find
Saving money doesn’t mean you have to be bored all day. Think about activities that won’t cost you anything, whether that’s walks, picnics or bike rides. There may also be online groups and activities you’re interested in.
free things to do