First-time buyers now pushed to move '30 miles away' to get on property ladder

First-time buyers who are struggling to get a foot on the property ladder are now having to move away from their desired area to be able to buy a house. Affordability issues are leading many new homeowners to consider relocating more than 30 miles from their original search area in order to secure a home.

New research found that 39 per cent of aspiring homeowners are now looking in neighbouring areas to improve their chances of securing a property that meets all their needs.

A new survey showed that in an attempt to keep up with house prices, first-time buyers are willing to compromise on location to obtain features such as a garden (66 percent), an extra bedroom (53 percent), an en-suite (48 percent), a driveway (47 percent), or a garage (44 percent).

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But decision to look beyond their immediate neighbourhoods isn't solely driven by economic factors, as 38 percent say they are in search of tranquillity or calm environments, whilst 32 percent are seeking safer communities with lower crime rates.

When it comes to stretching geographic boundaries, Welsh first-time buyers are leading the way, contemplating buying homes approximately 38 miles away from preferred areas.

Similarly, Londoners and those in the South East are open to moving up to 33 and 37 miles away respectively. The research, carried out by Moneybox through its savings and investment app, also found despite the hurdles of affordability, 79 percent place greater emphasis on owning a home, with 62 percent citing financial stability as their primary goal.

Reflecting on the findings, Moneybox's head of personal finance, Brian Byrnes, commented: "Market volatility over the last few years has really highlighted how compromise is often the key to getting on the property ladder as a first-time buyer.

"It's great to see how first-time buyers have been adapting to make their dream of owning a home a reality and we see this resilience and commitment every day among our customers. However, we also believe that more could be done to help first-time buyers navigate current market conditions with greater confidence.

"Interest rates and house price growth now mean that more people will struggle with affordability and so it's never been more important to save a suitable deposit."

A significant 35 per cent of participants in the study report feeling optimistic about securing a home, with an encouraging 22 per cent actually saving more than they previously planned for their deposit over the past half-year.

Nonetheless, the prevalent cost-of-living crisis is eroding the disposable income for 57 per cent of respondents, posing challenges to 51 per cent who are trying to set aside funds for property deposits amidst escalating house prices.

Research by OnePoll indicates that the amount first time buyers can put away for a house deposit has declined by 18 per cent compared to last year, dropping from £344 to £286 per month.

A hopeful 17 per cent of survey respondents are looking forward to the General Election for potential new measures to support prospective homeowners.

Brian Byrne from Moneybox highlighted: "As we enter the final weeks before the General Election, it is clear that more needs to be done to address housing supply and sustainably boost homeownership - without further inflating house prices. However, many of the solutions needed are complex and will take some time to bear fruit.

"That is why we've been campaigning to future-proofing the Lifetime ISA, a hidden gem of a savings product that has supported a whole generation of first-time buyers, to buy their first home far sooner than would have otherwise been possible due to its 25 per cent government bonus on deposit savings of up to £4,000 every tax year.

"We believe first-time buyers deserve all the help they can get and so we are calling on the next government to futureproof the Lifetime ISA and help more people save more money towards their first home deposit."