20 things

Alliance & Leicester Mortgages’ moving-improving index

11 August 2007

1 Alliance & Leicester Mortgages’ (A&L) moving-improving index has revealed that most aspiring first-time buyers choose an easy commute over living close to family and friends when choosing their first property.

2 The research indicated that 51 per cent of aspiring first-time buyers regarded living close to their place of work as the most important factor in their house purchase decision.

3 34 per cent of first-time buyers rated good transport links as a key decision maker when purchasing a property.

4 Just over a quarter of those first-time buyers questioned – 28 per cent – indicated that living close to friends and family played an important part when deciding on a property.

5 17 per cent of first-time buyers suggested that living near to shops and nightlife was essential, the study indicated.

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6 40 per cent of people currently renting would like to buy a property, but were unable to, A&L suggested.

7 Renters were looking to spend an average of £152,731 on their first home, the lender reported.

8 This figure was £6,761 higher than the national average first-time buyer property price, the lender indicated.

9 Of the first-time buyers that still lived with their parents, 52 per cent admitted that they had no intention of leaving in the near future, the A&L index revealed.

10 The report also suggested that if those first-time buyers still living with parents were to fly the nest, they would be looking to spend an average of £137,796 on their first home.

11 This represented a shortfall of £8,174 on the average first-time buyer property price, A&L suggested.

12 According to the Office of National Statistics (ONS), in 2006 the average first-time buyer house price stood at £145,970. Those currently renting a property would spend above this amount, and those living with their parents would spend below this amount.

13 Commenting on the results, Stephen Leonard, director of mortgages at A&L, admitted that first-timers often had matching themes, such as living near parents, that would help in deciding an area in which to buy.

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14 He explained: “Many first-time buyers are obliged to look closely at their priorities and overheads when they move.”

15 He added: “Clearly, choosing the right location is key to long-term happiness in a new home, but buyers should also be careful not to over-stretch their budgets and may opt for a short commute to work to help keep costs down.”

16 Looking at the number of aspiring first-time buyers who currently lived at home, Leonard admitted they would have to be more realistic in their approach to buying a property.

17 He concluded: “It’s interesting to see that many potential first-time buyers still living with their parents are actually looking to spend the least on a property and may well be under-estimating the cost of buying their first home, while renters appear to have a more realistic idea about moving and buying expenses.”

18 The movingimproving research was undertaken via an online survey from 3 to 5 April 2007, for A&L.

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19 The research was undertaken by YouGov.

20 As part of the research, questions were undertaken among a representative UK sample of 2,384 adults.