11
Aug
Weddings take back seat to property
Couples are opting to put money towards a deposit to buy a house
rather than have a large wedding, according to a new survey.
Research by HSBC found that more than a quarter of young Brits
would invest in property if they were given £20,000, rather
than spend it on nuptials.
Average couples would reduce their wedding budget by around
£5,000 if saving for their first home, while a total of 28 per
cent would opt to spend a £20,000 gift on a deposit for a
property.
It is estimated that the average cost of a wedding is £20,000,
but just one per cent of those aged between 18 and 34 would chose
to spend it all on tying the knot.
"With the average deposit for first time buyers now £23,500,
it appears that couples are choosing to be pragmatic when it comes
to tackling the difficult decision of whether to shell out on a big
wedding or buy a home," said Peter Dockar, head of mortgages at
HSBC.
"Clearly, it appears that being savvy with the pennies and giving
more thought to home buying is becoming a priority," he
added.
The most popular way of lowering the wedding budget was to reduce
the number of people invited, opt for a cheaper reception venue or
change honeymoon plans.
A total of 60 per cent of those involved in the research admitted
they are unable to afford a deposit without financial support from
family members.
Recent data shows that the price of property in the UK is still
continuing to rise. The latest figures from the Halifax House Price
Index show a rise of 3.6 per cent over the past three months and an
annual increase of 10.2 per cent.
This means the average home in the UK is now £186,322 and
there are concerns that salaries are not keeping up with the market
increases.
Stephen Noakes, mortgages director at the Halifax, explained that
monthly figures can be misleading but the quarter data tends to
demonstrate the overall trend accurately.
"While supply remains low, housing demand continues to be supported
by a continuing economic recovery, growth in employment, improving
consumer confidence and low mortgage rates. However, earnings
growth is still lagging behind consumer price inflation," he
said.
The sale of homes from April to June were 21 per cent higher than
during the same quarter in 2014, although new buyer enquiries are
continuing to slow down, according to data from the Royal
Institution of Chartered Surveyors.
Meanwhile, the latest Halifax Housing Market Confidence Tracker
shows that seller confidence is on the up. A total of 57 per cent
of those surveyed feel the next year will be a good time to sell,
compared to only 32 per cent who feel it would be a negative period
- this is the highest score of this measure since the
survey’s inception in April 2011.