First-time buyer deposits boosted by homeworking
Some first-time buyers have been able to boost their deposit savings pot simply by not forking out on their usual commuting costs, according to Trussle.
The online mortgage broker calculated that average first-time buyers who would normally commute to London, could have saved on average an extra £1,627.19 towards their housing deposit by working from home during the coronavirus pandemic.
It said aspiring homebuyers in Milton Keynes were able to save the most – 12% of their deposit target – by not paying their the cost of travel. If they worked from home during April to August, commuters from Milton Keynes would have saved £2,573 (12%) of the deposit needed to purchase an average two bedroom property of £211,946.
Miles Robinson, head of mortgages at Trussle, said: “We’re living in a time where many people’s finances have been impacted and household finances are stretched. Not only this, but the market is challenging for many first time buyers at the moment because of a lack of high loan-to-value products and the ever changing strict lending criteria.
“However, money saved by working from home could offer some consolation for those who are currently saving to step onto the property ladder. For some first time buyers, the savings from not taking their regular commute during lockdown could have added a boost to their deposits.
“Also, it’s likely they have saved on other costs like lunches in the city, which will have bolstered their deposits further.”
Affordable commuter spots
Trussle’s research also revealed the London commuter locations most affordable to first time buyers.
With an average two bedroom property price of £200,294, Chatham came out on top, closely followed by Bedford (£201,807) and Tilbury (£209,444).
At the other end of the scale, Oxshott is the most expensive location where an average two bedroom property will set first time buyers back £930,000.