Saving up for the first step on the property ladder can be a daunting step for many in the UK. Property prices and living costs make it difficult to even think about, let alone get the funds together to do it, but it’s not impossible with some planning, saving, and even government grants, which can be very helpful for first-time buyers. In this article, we’ll discuss three ways that buyers can get their foot on the property ladder.
Create a Savings Plan
The most obvious step on this journey, many would say, but one of the hardest at the same time. To buy a property, most purchases will require a deposit that is equal to 10% of the property’s value. It can seem daunting when that figure is in the thousands, but starting early and practicing discipline when it comes to saving can be extremely useful down the line.
If you don’t know what sort of deposit you need to save in relation to house prices, it is useful to look at what’s on the market. For example, online estate agents in the UK are a good place to start to view house prices in different areas of the country. While they can also remove some of the stress of buying when it comes to it by managing the process from start to finish, taking care of viewings, and even qualifying buyers for sellers. From doing research, buyers can set a realistic savings goal that will help them get their first property.
Take Advantage of Government Schemes
Several schemes in the UK exist to help first-time buyers get a property, making homeownership more accessible. For example, the shared ownership scheme allows you to buy a share of a property and pay rent on the remaining part of it. It also allows you to keep putting money into the property so that eventually you own it outright.
Another scheme that helps first-time buyers is the first homes scheme. Buyers can avail of up to 30% off new properties. There are certain thresholds to meet that are set by the government, but it is a helping hand for many just entering the market.
Manage Your Spending
Managing your total spending is probably a little more difficult than many imagine. However, there are some simple tricks that, over the course of a few years, can save thousands of pounds. Many savers change supermarkets or shop around to find the produce they want at affordable prices. Others sell their transport and begin taking the bus or train to work, while many move home to live with family to avoid paying rent. These are just some suggestions that may work for your situation.
Buying a first property is no easy feat. It can bring with it a lot of stress and saving, but the end reward is worth it. With schemes offered by the government as well as some thorough planning, affording a house doesn’t have to be a pipe dream and can turn into a reality sooner than you may have thought.