Two in three recent first-time buyers ‘moved to an unfamiliar location’
Some 67% of people who got on the property ladder in the past two years did not know their new neighbourhood, Santander UK said.
Two-thirds (67%) of first-time buyers who got on the property ladder in the past two years were unfamiliar with their new neighbourhood, according to research for a major bank.
This compares with just over half (51%) of those who bought more than five years ago moving to a location they did not previously know, Santander UK said.
Moving to an area they had never previously heard of and being further away from family and friends were among the main compromises people were willing to make to get a foothold on the property ladder, the research indicated.
Actor and presenter Ryan Thomas moved from Manchester to Brentwood in Essex, a neighbourhood he had been unfamiliar with before meeting fiancee Lucy Mecklenburgh.
“Moving away from my family in Manchester was difficult at first and it takes a while to find your feet in an unfamiliar neighbourhood, but I quickly started to get to know the locals, the great places for food, and where to take the kids for a fun day out.
“Moving first to Brentwood, and now seven years later, Lucy moving to my home town Manchester, has shown us both that getting to know a new neighbourhood is full of adventure.”
Santander said its mortgage data from 2019 to 2023 also indicates that the distance that buyers are moving from their previous location has increased in recent years.
Graham Sellar, head of mortgage development at Santander, said: “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.
The research was released as property website Zoopla said that in June, on average, home buyers were paying 96.8% of the asking price of a home – the highest proportion for 18 months.
The average selling price as a proportion of the asking price achieved in June last year was 96.5%, before dipping to 95.4% in November, as households grappled with high mortgage rates.
House prices have increased by just 0.1% over the past year to reach £265,600 on average, Zoopla said.
The property website added that it expects UK house prices to increase “slowly but steadily” over the second half of 2024, bolstered by an increased number of homes for sale and choice for buyers.
Zoopla also said that more buyers are searching further afield to get the home and features they are seeking, often because of considerations around affordability and value.
Richard Donnell, executive director at Zoopla said: “The housing market is starting to hot up after a stone-cold 2023.
“There are clear signs of growing confidence amongst buyers and sellers with many more homes for sale and buyers paying an increased proportion of the asking price.
“We expect to see more sales but house price inflation will be kept in check by more supply and affordability pressures keeping a lid on buying power, especially across southern England.”
