Unveiled map tracks down locations offering most budget-friendly abodes for first-timers: check your locality's affordability status.
In a significant move to assist first-time buyers in their quest for home ownership, property site Reallymoving has launched an interactive affordability map. This innovative tool allows users to search for properties within their budget and preferred number of bedrooms, providing a more targeted approach to finding affordable homes across the UK.
The map utilises a colour-coded heat system to highlight promising areas for potential buyers. Green areas signify locations where 90% or more of properties are within the buyer's budget, while orange areas indicate neighbourhoods where between 10-30% of homes are affordable. Regrettably, red areas denote places where fewer than 10% of homes fit the budget.
This map offers a valuable alternative to relying solely on average house prices, which can be misleading. For instance, first-time buyers with a £400,000 budget in London can find affordable options in areas like Purfleet, Gravesend, Watford, and parts of Croydon, despite the city's notoriously high house prices. Similar pockets of affordability exist in other cities such as Birmingham, Manchester, and Newcastle.
Rob Houghton, CEO of Reallymoving, emphasises the importance of considering areas with good transport links and a wide choice of properties, encouraging buyers to focus on affordability and access rather than just average price statistics.
The map serves as a practical tool for first-time buyers to strategically identify affordable locations based on their specific budget and preferences, making home ownership a more attainable goal. This interactive affordability map is accessible directly on Reallymoving’s website under their property market insights section.
In other related news, the chancellor, Rachel Reeves, has announced additional support for first-time buyers to get on the housing ladder. This includes a new permanent mortgage guarantee scheme.
For those seeking alternative ways to finance their first home, various options are available. Skipton Building Society offers a Track Record 100% mortgage to renters buying their first property, without requiring a deposit. Shared ownership schemes allow buyers to purchase a portion of a property (from as little as 10%) and pay rent on the rest, reducing the deposit and mortgage payments.
The availability of shared ownership homes varies depending on the area. In Edinburgh, buyers with a typical budget of £182,995 would find Bathgate the most affordable. First home schemes in England allow first-time buyers to buy a property with up to 50% discounted from its market price, subject to certain income and location restrictions.
For those aged between 18-39, the Lifetime ISA (LISA) allows tax-free savings for a first home, with the government adding a 25% bonus on top of savings up to £4,000 a year. Barclays' Family Springboard Mortgage allows buyers to purchase a home without a deposit, with a family member or friend providing savings worth 10% of the purchase price.
Mortgage options also include fixed rate and tracker mortgages, which provide an interest rate that remains the same for an agreed period and changes based on an external benchmark, respectively. The Yorkshire Building Society offers a specialized mortgage for first-time buyers with a deposit of £5,000, allowing borrowers to get a mortgage for properties up to £500,000.
In addition, family members can help with a deposit by gifting or through joint mortgages with relatives. If the helper provides savings worth 10% of the purchase price, Barclays' Family Springboard Mortgage allows buyers to purchase a home without a deposit. The money is returned to the helper after five years as long as the mortgage payments are kept up.
The average UK house price has risen by 3.9%, to £269,000, in the 12 months to May. Despite this increase, the new affordability map and the various financial support options available offer a glimmer of hope for first-time buyers hoping to get on the property ladder.
- The interactive affordability map on Reallymoving's website, utilized for its color-coded heat system, helps first-time buyers find affordable homes in areas like Purfleet, Gravesend, Watford, Croydon, Birmingham, Manchester, and Newcastle.
- For those seeking alternatives to traditional financing methods for their first home, options such as Skipton Building Society's Track Record 100% mortgage, shared ownership schemes, Lifetime ISA (LISA), and Barclays' Family Springboard Mortgage are available.
- Various mortgage options like fixed rate, tracker, and specialized mortgages, including the one offered by Yorkshire Building Society for first-time buyers with a £5,000 deposit, are essential considerations in personal-finance and real-estate investment when buying a home.
