Taking the first steps on to the property ladder can sometimes be daunting, but knowing what areas are favoured by first-time buyers could be a step in the right direction of getting your very own home.
- Martin Roberts: Homes Under The Hammer host addresses show ‘problem’
A building society in the UK analysed internal data relating to thousands of Lifetime ISA customers to find out where these savvy first-time buyers purchased their first homes.
Skipton Building Society released recently a list revealing the top 10 most popular postcodes for first-time buyers in 2019.
According to analysis of internal data relating to thousands of Lifetime ISA customers, found that Bristol, followed by Birmingham and Manchester were the top three most popular postcodes for first-time buyers.
But, what is a Lifetime ISA?
A Lifetime ISA (also known as LISAs) is a new type of ISA created to help people save for their first home or retirement.
When taking out a Lifetime ISA, the Government will give that person a bonus worth 25 percent of what they pay in, up to a set limit, every tax year.
A person can put a maximum of £4,000 into a Lifetime Isa each tax year.
The maximum bonus someone can earn on a tax year is £1,000, it might not be enough to just purchase a property with the bonus, but it will still put a helping dent in the final cost of a home.
According to Skipton Building Society’s results, there are ten locations that are favoured by first-time buyers in the UK.
Their research found home purchases by location in 2019 using the Lifetime ISA.
Only first-time buyers can use Lifetime ISAs to buy a home, but they are only permitted to buy a home worth up to £250,000 outside of London and in London for no more than £450,000.
They ranked the following locations of popular postcodes favoured by first-time buyers.
- UK Property: Asking prices soar as buyers flock back to the market
However, according to Zoopla, the property website, the average price for property in Bristol stands at £346,204 in February 2020.
This is a rise of 1.74 percent in the last three months (since November 2019) and rise of 3.68 percent since 12 months ago.
In terms of property types, flats in Bristol sold for an average of £256,666 and terraced houses for £299,847.
In comparison, the tenth most popular postcode for first-time buyers [Newcastle] is considerably cheaper on average property prices. The average price for property in Newcastle upon Tyne stood at £216,567 in February 2020, cheaper by £129,637 from Bristol.
This is according to the current Zoopla estimates.
Source: Read Full Article