"Whether their original area is unaffordable, or they’re deliberately looking to move further afield to get better value for their money, location has become the number one compromise for many first-time buyers."
- Graham Sellar, head of mortgage development at Santander
Two-thirds (67%) of Brits who bought their first home in the last two years had never seen their new neighbourhood before buying, compared to just over half (51%) of those who bought more than five years ago, according to new research from Santander UK.
While most make sacrifices in the type of property they buy, whether that’s fewer bedrooms, less garden space, or taking on a renovation project, the study has found more first-time buyers are increasingly compromising on the location with three in five (60%) moving to an area they had never even heard of, to secure a foot on the property ladder.
Being further away from family (70%) and friends (68%) were also among the top compromises. What’s more, in a rush to snap up a dream home, 40% of buyers are spending less than two hours getting to know an area before buying a property there, with many saying they spent more time watching a series on Netflix (23%) or scrolling social media in an average week (21%).
Over a third (36%) of first-time buyers gave their top reason for moving to an unfamiliar neighbourhood as it being cheaper, while a quarter (24%) said they could not find a property in the neighbourhood they had planned to live in that met their criteria.
The distance buyers are looking from their original location is also growing, with last year’s Santander mortgage customers moving on average 23% further from their previous address, compared to the last four years.
Despite being away from loved ones, buying further afield reaps financial reward, with those first-time buyers moving to new neighbourhoods in the last two years saving an average of £29,000 compared to buying a house in the area they lived in before.
Graham Sellar, head of mortgage development at Santander, commented: “There’s a growing trend among first-time buyers to move to neighbourhoods further away from where they grew up, or where they were previously renting. Whether their original area is unaffordable, or they’re deliberately looking to move further afield to get better value for their money, location has become the number one compromise for many first-time buyers.”
