20 things

20 things you should know about

10 February 2007

1 Abbey has revealed the sacrifices that aspiring first-time buyers are willing to make to afford a property.

2 With rising property prices and financial constraints, Abbey has revealed aspiring first-time buyers are willing to make a host of sacrifices to step onto the property ladder.

3 The research indicated that 53 per cent of aspiring first-time buyers would give up holidays or travelling in order to step onto the property ladder.

4 49 per cent of potential first-time buyers admitted that they would give up alcohol in order to get onto the property ladder sooner.

5 The survey revealed that 43 per cent would give up smoking as part of their

6 21 per cent also suggested that they would move back in with their parents in order to save up to buy a property.

7 Abbey also revealed in its study that 5 per cent of aspiring first-time buyers, would be prepared to turn off their heating to make savings enabling them to raise a deposit.

8 Abbey indicated that this equated to 2.9 million people, who would be willing to sacrifice heating in order to save for a deposit.

9 9 per cent of aspiring first-time buyers confirmed that they would be willing to sacrifice relationships and dating for in order to save money for a suitable property deposit.

10Commenting on the findings, Nici Audhlam Gardiner, head of mortgages at Abbey, said: With first-time buyers struggling to get onto the first rung of the property ladder, prospective homeowners are having to make big sacrifices to build their finances.”

11 She added: “With a typical first-time buyer taking as long as five years to save up a 5 per cent deposit, people would need an iron will to sacrifice anything they enjoy for that long.”

12 Scottish buyers were least likely to move back with their parents, while those in the North East were least likely to give up alcohol.

13 A regional breakdown of the figures revealed that 7 per cent of would-be first-time buyers in Scotland would move back in with their parents in order to save up for a deposit.

14 The regional breakdown also indicated that 12 per cent of aspiring first-time buyers in the North East would be willing to give up alcohol, compared to the average of 49 per cent.

15 The Abbey study quoted Royal Institute of Chartered Surveyor (RICS) statistics, which revealed that accessibility to property affordability is almost 230 per cent worse off than in 1996, and is currently as low as the levels of affordability seen in 1980.

16 The Abbey research into first-time buyers also showed that a couple saving for their first property together would have to save the equivalent of 81.8 per cent of their joint income in order to build up the average £32,784 needed for up front buying on a typical first-time buyer property, taking into account the deposit required and Stamp Duty tax.

17 1,478 people were interviewed by the research company Tickbox.net, between 24 and 26 November 2006 as part of the Abbey study.

18 The RICS figures were taken from a January study conducted by the organisation.

19 Abbey is a wholly owned subsidiary of Banco Santander Central Hispano, S.A.

20 Banco Santander Central Hispano is the largest bank in the euro zone by market capitalisation, and one of the largest worldwide.