According to Experian PropertyCheck, an online service that not only provides up-to-date property valuations but also invaluable insights into the local neighbourhood and who your neighbours are likely to be, first-time buyers in the UK have been flocking to Milton Keynes, where they make up almost one in 10 households (9.5%) in the town, closely followed by Dartford (9.3%) and Swindon (8.9%).
The top ten first-time buyer hotspots in the UK are:
1. Milton Keynes (9.5%)
2. Dartford (9.3%)
3. Swindon (8.9%)
4. Aldershot (8.6%)
5. Hempstead Valley (8.2%)
6. Basingstoke (8.1%)
7. Crawley (7.8%)
8. Slough (7.8%)
9. Bexleyheath (7.6%)
10. Aylesbury (6.9%)
Peter Turner, Managing Director of Experian Interactive, UK&I commented:
“In spite of difficulties across the country in getting that first foot on the property ladder, online indicators suggest the market is improving for first time buyers. Year-on-year searches for ‘first time buyer mortgage’ were up 8-fold and searches for ‘95% mortgages for first time buyers’ more than doubled in the last 12 months.
“For many first time property buyers, raising the necessary deposit to secure a mortgage involves many years of hard work and sacrifice. One of the benefits of the Experian PropertyCheck service is that it’s about more than just house prices. We can use Experian’s data resources to explain more about the makeup of communities, the professions and types of household in a particular area, essentially who your potential neighbours are likely to be.
"As well as a high number of new-build properties, areas with young families attract other young families and the amenities that they look for, which can have a positive effect on long term area development.
“For anyone thinking or actively looking to buy a new property, the Experian PropertyCheck service provides invaluable insights about the area you are considering making your new home. This in-depth information into what your new neighbourhood is like including Ofsted scores for each local school, flood and crime risk etc. help take the guess work out of not only finding a property but also setting up your new home.”
Who are these first time property buyers?
This research, which incorporates content sourced via Experian’s Mosaic consumer classification system, shows two distinct groups can be identified amongst these first time property buyers namely ‘First To Move In’ and ‘Foot On The Ladder’ each with their own distinct characteristics.
‘Foot OnThe Ladder’ property buyers incorporate young singles and couples on middle incomes who have recently bought themselves a house on a private estate. They are typically paying a very substantial proportion of their monthly income in the form of mortgage interest. These properties are not new builds and for over 60%, will not be homes for life with most making a new property purchase within five years.
The typical location of these estates, on the outskirts of town and near to motorway junctions, makes them a cheaper alternative to the housing in the more established residential areas of neighbouring towns. They usually drive to work, and indeed everywhere else.
As their lives are so car-dependent, they have one each, both of which they bought second-hand and most likely to be Ford, Peugeot, Vauxhall, Seat and Renault brands. They shop in bulk, and often from budget ranges. Asda, Aldi and Lidl all see a lot of business from ‘Foot on the Ladder’.
Within the home, these property purchasers amuse themselves more with the Internet than with TV, though they do make time to watch their favourite reality shows and glamorous US
imported shows. Online, they like shopping for clothes and DVDs, as well as playing online games and social networking. Like many young professionals, they can often be found looking for a new job, or eyeing up their dream property. They seldom read newspapers, but if they do, they'll buy the Mail or the Sun.
‘First to Move In’ property buyers are people who have moved into homes which have been built in the last year to 18 months - the residents have moved in as the builders have moved out.
‘First To Move In’ are young, mostly under 35, single or living with their partners, though few are married, and many households will be houseshares or have a lodger to help pay the mortgage. Most residents are very happy with the neighbourhood, the areas tend to be safe, and relations with neighbours are also polite, often forged at a time when they all moved in together.
While most households have a car, most likely BMW, Audi or Seat brands, they bought into these property developments for their central location, and many use public transport or even walk to work and most of their leisure destinations.
This sense of city-centre living shapes their choices. They mostly shop at whichever supermarket is closest, but also do a lot of online shopping. They enjoy food, and use their consumption of premium ranges, organic and health fortified food to help them live healthy lifestyles.
‘First To Move In’ property buyers most often read the Guardian and Independent however they are not loyal readers and will pick up other newspapers from time to time if there is an interesting article or offer. They also spend a large amount of time online, mainly for entertainment and practical information. This type, particularly the men, are the most likely to have sophisticated smartphones, and will use them as an organising touchstone-come-comfort blanket.
More about the First-Time Buyer Belt:
