First-time buyers who would normally commute to London could have saved on average over £1600 towards their housing deposit by working from home during the COVID-19 pandemic, according to the latest research by online mortgage broker Trussle.
Trussle surveyed nearly 80 commuter locations within a 45 minute train journey from London.
The broker looked at monthly season ticket prices, average two bedroom property prices, and the cost of a 10% deposit and the savings versus this.
Milton Keynes came out on top as the town where first time buyers have been able to add most towards their deposits.
By working from home during April to August, commuters from Milton Keynes saved £2,573 which equates to 12.14% of the deposit needed to purchase a two bedroom property of £211,946.
Other towns that offered top savings for first time buyers include Bedford (11.83%) and Didcot (10.96%).
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 (LTV) 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.
“Our research also revealed the 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.”