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Saving to buy a first property is a huge priority for a lot of people in the UK, but the markets certainly haven’t made it easy in recent years.
While there has been a slowdown in house prices in some regions since the Brexit referendum, unfortunately for people looking to buy their first home in one of the UK’s major cities, analysts believe prices are going to continue to rise significantly in these areas.
House Prices in Cities to Rise by More Than Previously Thought in 2017…
Hometrack, who specialise in analysing and predicting what the UK property market will do, have released a report suggesting prices in cities like Manchester, Leeds and Birmingham will go up by 6-7% over the rest of 2017.
Previous analysis made in December suggested 4%, so this is a significant upgrade to their estimates, and worrying for first time buyers.
Tips for Those Saving for a Deposit
One of the main reasons prices are going up so sharply is the anticipated migration into major cities.
Buyers with the option to may therefore get on the property ladder faster and enjoy a better deal by considering living outside of the major city of their choice – though the cost of commuting would need to be factored in.
If you are not able to be flexible about where you live, you should research up-and-coming neighbourhoods and watch how property prices change while you are saving.
If you buy in an area where prices are rising sharply, but get in early enough, then the rising house prices will be a benefit to you rather than a barrier.
Money Saving Options
You may also be able to save your deposit faster if you look for secondary income streams.
You could try anything from taking extra work, starting a small side business, or getting involved in trading on the stock or forex markets. If you are already saving at the limit of your current budget, looking for ideas for sidelines that could generate some extra money (even if it’s just selling some of your old stuff), can help add extra funds to your deposit kitty and make you feel like you are making faster headway.
Considering these things as well as all the obvious things, like keeping to a monthly budget and making sure you have a good deal on your savings account, can help you get there a little faster, and possibly beat some of the effects of the inflation in the house price market in our biggest cities.