Working from home during the pandemic has had an unexpected advantage for some first-time buyers who have put money normally spent on the commute towards their deposit instead.
Analysis by mortgage broker Trussle has revealed buyers who would normally commute to London could have saved an average of £1,627 towards their first home as Covid-19 restrictions kept many workers in their homes.
The research zoned in on certain commuter regions to find out exactly how some first-time buyers could have benefited from the savings on train, bus and tube travel.
Researchers pinpointed Milton Keynes as one of the best locations for first-time buyer savings. Indeed, the study found, those saving for their first home in this location would have saved 12% of the deposit needed on the average two-bedroom property.
Savers in Bedford and Didcot in Oxfordshire were also reaping the rewards of not having to commute, with Trussle finding first-time buyers in these areas could have saved 11.8% and 10.9% respectively towards their first property.
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 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.”
Most affordable locations
The research also revealed the commuter locations most affordable to first-time buyers. With an average two bedroom property price of £200,294, Chatham in Kent came out on top, closely followed by Bedford (£201,807) and Tilbury in Essex (£209,444).
At the other end of the scale, Oxshott in Surrey was the most expensive location where an average two bedroom property will set first time buyers back £930,000.
First-time buyer savings based on location (Source: Trussle)
| Location | Monthly season ticket price | Saving | Average property price | 10% deposit | Saving vs deposit |
| Milton Keynes | £514.60 | £2,573.00 | £211,946 | £21,195 | 12.14% |
| Bedford | £477.40 | £2,387.00 | £201,807 | £20,181 | 11.83% |
| Didcot | £518.80 | £2,594.00 | £236,780 | £23,678 | 10.96% |
| Chatham | £419.80 | £2,099.00 | £200,294 | £20,029 | 10.48% |
| Witham | £450.90 | £2,254.50 | £219,772 | £21,977 | 10.26% |
| Luton | £425.10 | £2,125.50 | £210,555 | £21,056 | 10.09% |
| Biggleswade | £460.10 | £2,300.50 | £231,658 | £23,166 | 9.93% |
| Arlesey | £421.70 | £2,108.50 | £240,550 | £24,055 | 8.77% |
| Reading | £454.70 | £2,273.50 | £261,378 | £26,138 | 8.70% |
| Paddock Wood | £452.80 | £2,264.00 | £273,184 | £27,318 | 8.29% |
