First-time buyers increasingly desperate to get a foot on the property ladder are willing to give up the little luxuries so dear to the younger generation, and 49 per cent will even sacrifice alcohol, Abbey research has revealed.
While more than half – 53 per cent – were willing to give up holidays and travel, another 21 per cent would consider moving back in with their parents to save money for their home.
The increasingly radical measures young people are prepared to take to secure their first home testify to their anxiety that house prices will continue to grow in spite of successive base rate increases, making early purchase a must.
The Royal Institution of Chartered Surveyors recently found that interest rate hikes hit first-time buyers more severely than buy-to-let investors.
"With first-time buyers struggling to get onto the first rung of the property ladder, prospective homeowners are having to make big sacrifices to build their finances," Nici Audhlam Gardiner, head of mortgages at Abbey, commented.
A couple hoping to buy a home for the first time are now compelled to save up to the equivalent of 81.8 per cent of their joint take home pay within a given year, Abbey found.For more information about first-time buyer mortgages, click here.
© Adfero Ltd