The average asking price for a home in the UK rose by £7,400 to £367,501 in May, a jump of 2.1% from April, meaning prices are at a record high for the fourth month in a row. It is also the highest at this time of year since May 2014.
In the past two years, national average asking prices have risen more than £55,000, compared to a £6,000 increase in the two years before the pandemic.
This is despite the cost of living crisis we currently find ourselves trying to navigate. And while these figures may not be an issue for those who already own their own home, for first timers who are struggling to get on the property ladder it’s enough to make you weep.
However, there are still pockets of the Midlands ripe for first time buyers and with some astute number crunching it is still possible to save enough to get a deposit together.
Sheldon Bosley Knight’s head of residential sales, James Morton said: “Anyone looking to buy their first home in this current economic climate will need to put in some serious financial planning if they want to get a deposit together.
“They may also need to extend their geographical area to accommodate their budget as many parts of the country are becoming too expensive even with, what would only a few years ago, have been a healthy deposit. Or it may be that shared ownership properties are more suitable and affordable.
“So, there are still options available and we would advise the first thing to do, is work out how much you need to save up to buy a home. The general rule of thumb is the more you save the cheaper the mortgage rate is likely to be. For example, if you have saved enough to cover 30% of the purchase price the interest rate on the mortgage will be lower than if you only saved 10%.
“Next, make a list of all your outgoings and work out where you can make judicious cuts. Look for better deals on broadband and energy bills and get rid of any non-essential subscriptions such as Sky and Netflix for example or gym memberships.
“Make sure your saved money is in a separate account so you can see how much you are saving. Look for accounts which give bonuses or better interest rates and don’t be afraid to switch to a different account if it offers a better deal. The Money Saving Expert is an excellent and up to date resource for this.
“Finally, visit an agent such as Sheldon Bosley Knight. We have the experience, expertise and local knowledge to help you find the right home. We can advise on the best geographical areas to look at, what would be a good ‘first home’ for those on a tight budget and can help when it comes to accessing mortgages and conveyancers.
“There are certainly areas locally with properties below the national average and with areas such as Leamington and Warwick seeing a boom in house building, the picture locally is not as negative as that nationally.
“With the right help, advice and support we are confident you can find the right home.”