Santander warns two in three first time buyers | Personal Finance | Finance
High house prices and bills means two in three first time buyers are forced to relocate to areas they know nothing about. And as many as 60 percent are taking a chance on moving to places they had not even previously heard of, according to research by Santander.
The research found that despite moving to a new area, some 40 percent of young buyers spend less time getting to know their neighbourhood than watching Netflix in a week.
The bank said a lack of suitable properties and affordability constraints are the main reasons people are moving further afield. However, it generally means moving away from family, friends and neighbourhoods where they were raised.
Santander said: “Two-thirds (67 percent) of Brits who bought their first home in the last two years had never seen their new neighbourhood before buying, compared to just over half (51 percent) of those who bought more than five years ago.
“While most make sacrifices in the type of property they buy, whether that’s fewer bedrooms, less garden space, or taking on a renovation project, more first-time buyers are increasingly compromising on the location with three in five (60 percent) moving to an area they had never even heard of, to secure a foot on the property ladder.
“What’s more, in a rush to snap up a dream home, 40 percent of buyers are spending less than two hours getting to know an area before buying a property there, with many saying they spent more time watching a series on Netflix or scrolling social media in an average week.”
TV presenter Ryan Thomas moved 212 miles from Manchester to Brentwood, Essex, a neighbourhood where he’d never been before, prior to meeting his fiancé, Lucy Mecklenburgh.
Ryan said: “It can be daunting moving home, especially when you’re building your life in a completely new area.
“Moving away from my family in Manchester was difficult at first and it takes a while to find your feet in an unfamiliar neighbourhood, but I quickly started to get to know the locals, the great places for food, and where to take the kids for a fun day out.
“Moving first to Brentwood, and now seven years later, Lucy moving to my hometown Manchester, has shown us both that getting to know a new neighbourhood is full of adventure.”
Some 36 percent of new buyers gave their top reason for moving to an unfamiliar neighbourhood as it being cheaper, while 24 percent could not find a property that met their needs. Santander said the average saving by moving further away from a preferred location was £29,000.
Graham Sellar, Head of Mortgage Development at Santander, said: “There’s a growing trend among first-time buyers to move to neighbourhoods further away from where they grew up, or where they were previously renting.
“Whether their original area is unaffordable, or they’re deliberately looking to move further afield to get better value for their money, location has become the number one compromise for many first-time buyers.”
Santander has set up an information hub to help people relocating to an unfamiliar area. Details can be found here.
