Getting your foot on the property ladder can seem daunting, but it doesn’t have to be, once you read our tips and advice.<\/p>\n
How do you make your dream of buying your first home a reality?<\/p>\n
With UK house prices continuing to rise \u2013 official figures from the Office for National Statistics based on mortgage completions puts the average house price at a hefty \u00a3264,000 (2023) \u2013 and with demand outstripping supply, owning your own home is far from easy \u2013 but it\u2019s not impossible.<\/p>\n
There\u2019s no doubt that buying your first property has become increasingly difficult over recent decades. In 1981, nearly one in three 16-24-year-olds was a homeowner. By 2016, it was one in 10. Meanwhile, the proportion of renters in younger age groups has increased by 14% among 16-24-year-olds since 1996.<\/p>\n
This trend may mean you\u2019ll have to wait a little longer to become a homeowner. Since 2007, the average age of first-time buyer in the UK has increased by six years, with people turning 34 by the time they\u2019ve bought their first property.<\/p>\n
However, with planning, research and a little know-how, one day you too can have a home that you own.<\/p>\n
The best place to start is by putting together a plan of action so you can break out of the rental cycle. After all, when you get a mortgage, every payment you make takes you a step closer to owning the property outright \u2013 even if the process does take 25 years.<\/p>\n
If you\u2019re a tenant, every rent payment you make is income for your landlord.<\/p>\n
So, if you\u2019re determined to make that leap from renter to homeowner and get on the property ladder, check out these six top tips:<\/p>\n
1. Pay off any outstanding debts<\/strong><\/p>\n Put together a list of all your credit card, store card, overdraft and loan debts and check how much you owe on each and what you\u2019re paying each month. It might be worth considering a consolidation loan to pay off everything you owe.<\/p>\n Work out a budget so you know how much you have left each month after paying your essential rent and utility bills and everyday living costs to cover food, petrol etc. What\u2019s left is your \u2018available income\u2019.<\/p>\n Rein in luxuries such as takeaways on speed dial and pricey nights out, and check your standing orders \u2013 are there monthly subscriptions that you\u2019ve forgotten about? Or membership to a gym you never go to? Use your available income to knock your debts into touch. And, once they\u2019re gone, you can start putting the cash away towards your deposit.<\/p>\n