Number of Brits saving for a house deposit increases
According to Birmingham Midshires, the number of people saving towards a house deposit in the UK has increased by 29 percent. This has been revealed further to the company’s ‘Saving Britain’ campaign in which more than 2,000 adults were asked about their saving habits.
23 percent of savers between 25 and 34 years of age are now saving in order to get onto the property ladder, compared to just 19 percent in July 2008. There has also been an increase in the number of 35 to 44 year olds saving for the same purpose. Seven months ago this figure stood at 8 percent whereas it has now reached 10 percent.
In terms of the geographic divide, London is traditionally the area in which the greatest number of people are saving for a house deposit. However, Wales and East Anglia have experienced the most significant uplift from July 2008 to today, at 166 percent and 150 percent respectively. The number of Welsh savers shot up from 6 percent to 16 percent during the period. In contrast, those in Lancashire and Scotland are now less likely to be putting money aside towards a house deposit.
The research also revealed a change in attitudes and behaviours towards saving, with many people now choosing to save-up for a significant purchase as opposed to utilising credit facilities. For example, the percentage of 25 to 34 years olds saving for a wedding has increased from 6 percent in July 2008 to 10 percent today. In addition, the percentage of Brits saving for a holiday has increased from 25 percent in July 2008 to 27 percent today. An increasing number of people are now saving for specific reasons, with the percentage of people saving for ‘nothing in particular’ falling from 37 percent in July 2008 to 35 percent today.
Director of Savings at Birmingham Midshires, Tim Hague, commented: “This research shows a change in the mindset of Britons over the last seven months. One positive thing to come out of the current financial uncertainty may be a renewed understanding of the importance of saving money in advance of making big purchases. The need for people to prepare for their financial future is increasingly important.”
Those homeowners who have contemplated moving could consider improving with a secured loan. One of many options to fund home improvements, a secured loan could be used to create the extra space needed to accommodate a growing family. Extending over two stories would add that extra bedroom and also additional space on the ground floor which could be utilised for a play room or a quiet room for parents to get some peace and quiet. Secured loans could also be used to carry out space creating improvements including loft or basement conversions or even to add a conservatory.
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