First-time buyers are being forced to move to crime-ridden areas away from their families and the best schools because they can’t afford to live anywhere else.
New research has revealed that many homeowners are regretting their decision to get on the property ladder because of the sacrifices they have to make.
According to comparison website money.co.uk, one in 10 first-time buyers regret their decision to get on the property ladder because they can only afford to live in crime-ridden areas or have to move away from their families as the housing market is so expensive.
The research found that one in seven moved to what they believed was a higher crime rate area in order to get on the ladder. Worryingly, 18% of these have experienced a burglary at their home and 19% have personally been a victim of crime.
Insurance premiums have also taken a hit due to the move, with 30% claiming their home insurance has gone up and 28% their car insurance compared to the amount they paid in their previous home.
With four out of 10 moving away from their family, having to break family ties was cited as the biggest regret around buying a first home. Almost a third moved 37 miles away on average, leading to increased levels of stress.
Many first-time buyers are unable to afford a property near their place of work, so end up having a longer commute. Up to 29% increased their commute to work in order to buy a home, adding up to six hours per week to their journey. As a result more than a quarter (26%) reported increased levels of stress.
Four out of 10 new home owners admit they moved to areas with fewer good schools. This could be costly in the long run with over a third (34%) claiming they will have to move home again when they start applying for schools.
More alarmingly, half of those that did not move near the best schools claim they had to falsify their address in order to get their children into a good school. One in 10 children had to move away from their existing school and their friends.
Some are even prepared to live in a flood risk area because things have become so desperate. One in 10 took the plunge and opted for a higher flood risk area, while three-quarters are paying up to 75% more for building and contents insurance than on their previous home.
Hannah Maundrell, editor in chief at money.co.uk, said: “Getting a foot on the property ladder requires more and more sacrifice as prices increase. We no longer have the luxury of thinking ‘location, location, location’, the harsh reality is, it’s a case of buying where you can afford.
“Whilst it’s a great idea to compromise, you really need to think about how things like a longer commute and living in a higher risk crime area play out in reality. Quality of life and personal wellbeing are a big priority that shouldn’t be overlooked. Consider all options to help you get the right place for you, such as the government schemes which are designed to help you afford your first home.”
Hannah’s top tips to get a foot on the ladder without sacrificing your personal wellbeing
- Research government schemes which are designed to help you afford your first home.
- It’s worth shopping around for your mortgage – don’t just take one out with your existing bank because you might not get the best deal.
- The bigger your deposit the better the deal you’ll get and the more property you’ll be able to afford so it might be worth holding on for as long as you can and save up before buying in an area that isn’t suitable.
- Look at getting a Help to Buy ISA because free cash from the government is too good to turn down.
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