Thinking of buying your first home? A new study suggests it’s a savvy move! Over five years, first-time buyers could be £64,000 better off than those who rent. The ‘First-Time Buyer Index’ from mortgage brokers Tembo reveals that while upfront costs remain a hurdle, the potential long-term savings are significant.
The study found that after one year, buyers save an average of £7,600 compared to renters. Fast forward five years, and this increases to a whopping £64k savings. How? It’s all in the maths. Buying a home can increase your financial position due to rising property values, whereas renting and investing a deposit elsewhere doesn’t bring as much return.
Even though building a deposit can take ages—often over a decade—the drop in mortgage rates to 4.48% is easing the financial burden, making monthly payments more manageable. Despite the challenges like stretched borrowing and regional inequalities, now could be the perfect time to jump on the property ladder.
Thinking about where to buy? Glasgow tops the list for affordability alongside notable house price growth, making it the best choice for first-timers. Meanwhile, London remains the least affordable, with rent taking up more than half of a typical income!
Richard Dana, CEO of Tembo, urges buyers to focus on gaining a foothold in the market, saying, “Getting on the ladder is more important than timing it perfectly.”
Curious about how different cities rank or want more details? Check out the full index and arm yourself with the data-driven insights to help make the best decision for your future!
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