Source: Pixabay

Many people harbor dreams of getting on the property ladder and owning a house. However, the significant financial implications of taking such a step have caused issues for some people in the UK in recent years.

In some cases, the so-called Bank of Mom and Dad has been able to provide welcome assistance, with relatives providing a helping hand. However, a new study has suggested that a growing number of people are managing to specifically tackle the issue of deposits on their own.

Going it alone

In the middle of May, Financial Reporter covered some intriguing new research from the estate agent site Purplebricks. The study found that 43 percent of first-time buyers have managed to raise a deposit without any other help. This marked a significant increase from five years ago when the percentage was just 29 percent. The research suggested that deposits these days stand at around £27,000, with this representing a fall from the figure of almost £33,000 recorded in 2016.

Elsewhere, the site revealed how Purplebricks found that first-time buyers were increasingly interested in new-build homes, while 68 percent also stated that they would consider a property in a rural area. In terms of key things to look out for in a property, 41 percent said quality Wi-Fi was important.

Other financial elements

The findings put an interesting spotlight on how first-time buyers in the UK are thinking right now. Saving for a deposit is of course a crucial issue and many people are evidently managing to do it themselves. However, it is worth remembering that there are other financial aspects to a property transaction.

 

Source: Pixabay

For instance, buyers must also have a clear idea of the mortgage market and the amount they can borrow towards their new home. This may have involved speaking to an expert in person in the past, but it can also be done online now thanks to services like the mortgage comparison site Trussle. The site explains how its experts compare thousands of mortgages, while it also features some handy tools as well. These include a mortgage calculator and a full guide to purchasing a property as a first-time buyer.

In addition, as first-time buyers start to zone in on a specific property or location, they will also need to consider costs related to that area. For example, UK homebuyers might want to use the Gov.uk website to consider their council tax band and how much they will be paying towards that. Then there is the issue of utilities, including water and energy bills.

Plenty to consider

Getting on the property ladder can feel like a huge achievement, as there is clearly so much to consider as you look to make it happen.

The Purplebricks study has highlighted the state of play for many first-time buyers in the UK, but it is vital that they also consider other issues around buying a house as well. It will be interesting to see how matters in the market development in the months ahead.

Washington News Post