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First-time buyer deposits boomed during pandemic

Written by: Anna Sagar
Lower spending during lockdowns allowed many first-time buyers to save faster to buy a home
First-time buyer deposits boomed during pandemic

The Covid-19 pandemic has allowed first-time buyers to save up a deposit faster due to reduced spending on areas like clothes, eating out and holidays.

A fifth of first-time buyers who planned to get on the property ladder in the next five years have managed to save a deposit this year.

When asked where the biggest savings were made, 60% said they spent less on clothes, 56% cut back on eating out and 51% didn’t go on holiday.

Other areas of saving included reduced spend on big food shops at 43% while 16% polled said they had taken on an extra job, according to the research by The Nottingham.

Around a third of the 1,023 adults surveyed said they planned to view properties this year and 8% of first-time buyers said they had started househunting.

Over a quarter (28%) said they expected to start viewing properties in the next two or three years and a quarter said they expected to look at properties in the next three to five years. The rest said they were unsure when they would start viewing.

Iain Kirkpatrick, chief customer officer at The Nottingham, said: “The restrictions placed on people during the height of the pandemic saw many dramatically cut back on the amount they spent – from eating out, to buying new clothes and holidays.

“Although it has been a very difficult time, for many of those saving for their first home the reduction in their expenditure provided an opportunity to dramatically increase their deposit savings and move a step closer to owning their own home.”

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