Stick to your budget and build that all-important house deposit faster, says Vicky Shaw. The UK s housing market has been booming in recent weeks. According to Office for National Statistics (ONS) figures, the average UK house price leapt by £20,000 in the year to February. Property website Zoopla calculates nearly £150 billion-worth of home sales took place across the UK in the first 15 weeks of this year - a significant increase compared with 2020 and 2019. And according to NAEA (National Association of Estate Agents) Propertymark, one in six (16%) homes sold in March went for over the original asking price - the highest proportion since 2014.
It can be hard, but try to stick to a budget each month by working out what you can live on, and then save the rest. If you put the money you want to save into a separate account straight away, you can act as if it was never there – so what you are left with is what you have for the month and that’s it.
It will also be good practice for when you get your own place and adjust to paying regular mortgage payments and other bills, as well as household maintenance.
2. Buy what you need, not what you want
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The number of mortgage approvals is lower than the recent peak of 103,100 in November 2020, showing that amounts being borrowed is soaring. One in six homes sold for above asking price last month - the highest proportion for seven years as house market shows no sign of cooling
One in six homes were bought in March for more money than the amounts that sellers were originally asking for, according to estate agents.
It marked the highest proportion of homes selling for above the asking price in about seven years.
The number of sales agreed was also the highest for the month of March since 2007, NAEA (National Association of Estate Agents) Propertymark said.