Covid-19 has given prospective homeowners time to save for a deposit
Covid-19 has been hard for everyone, at times it has been hard to see any positives amidst all the negativity. But for one group of individuals it may have had one silver lining. Potential home buyers have utilised Covid-19 to their advantage as many prioritised saving for a home deposit during this time.
Saving for a house deposit is usually the largest challenge facing home buyers. Often 10-20% of the properties total is required in cash up front. The pandemic has taken some of the pressure off these savings goals.
Individuals have had more time to save but they have also had some traditional every day expenses cut. E.G they may be saving on petrol due to working from home. This has made saving easier.
Since the start of the pandemic upwards of 58% of prospective buyers say they have been able to save for a house deposit during lockdown. However, 41% have also said that they believe the market is now more competitive than it was pre covid-19.
Angela Keegan, managing director of MyHome.IE has argued that Covid-19 has had a huge impact on the property sector. Due to most construction work being suspended during the first lockdown we are now facing the issue of high demand and comparatively low supply.
Stock levels are said to be down 27% year on year, the reopening of the construction sector should help to reduce the supply and demand unbalance.
Housing supply is still the most pressing issue to home buyers. 42% of prospective homebuyers said that is there was housing stock more readily available they would consider buying a property immediately.