First time buyers want ‘less than perfect’ first home

First time buyers are increasingly prepared to buy in less fashionable areas so they can add value and get ahead of the property market.

According to the Yorkshire Bank’s quarterly Housebuyers Survey almost one in three (30%) first time buyers are trying to get their foot on the property ladder and are prepared to forsake ‘location, location, location’ for properties that will allow them to add value and gain equity.

One in five (20%) would even consider buying their first house next to a cemetery or a train line if it meant they could purchase a larger property for less money with the potential to increase its value. Almost two fifths (37%) said they would prefer to live in a home that they can add value to by embarking on an extension or loft conversion to gain an extra bedroom rather than buying a bigger house to start with.

Gary Lumby, Yorkshire Bank’s head of retail, said: “Our research shows that first time buyers are becoming increasingly savvy when it comes to buying their first home. Although living in less than fashionable area or a less than perfect house may not be the dream home first time buyers have in mind, building up equity and adding value can help make their entry to get onto the property ladder very worthwhile.”

Avoiding overstretching

With Bank of England interest rates currently at a six-year high, first time buyers want to avoid over stretching themselves when buying their first home. Over a third, (32%) don’t want to take on a larger mortgage than necessary. And 18% of first time buyers are expecting house prices to rise noticeably over the next twelve months.

Gary Lumby said: “It’s crucial first time buyers don’t overstretch themselves when buying their own home so they avoid potential financial struggles. It’s sensible to see that many first time buyers are considering properties and postcodes that may not normally be at the top of they’re viewing list but could benefit them financially in the future.”