The Gruelling Gauntlet: Kiwis Navigating the Property Ladder's Steep Climb
For many in Aotearoa, the dream of owning a home feels increasingly out of reach, a sentiment echoed by Lottie Rossington and Kelly McCall, a couple who have dedicated four years to diligently saving for their first property. Despite a solid combined income and significant lifestyle adjustments, they're finding the path to homeownership a frustrating and seemingly insurmountable challenge.
Lottie, 35, a pub manager, and Kelly, also 35, an operations supervisor for a security firm, currently reside in a flat above Lottie’s workplace in Hyde, Tameside, Greater Manchester. While their household income surpasses £80,000, and they've managed to squirrel away a £20,000 deposit, the reality of the property market is proving to be a harsh adversary. They’re aiming to secure a mortgage for a two-bedroom, semi-detached home in their desired area.
"We've simply outgrown our current flat and feel quite stuck," Lottie explains. "Even with a total budget of £250,000, we're struggling to find anything that doesn't require extensive, costly renovations. Anything that does fall within our price range desperately needs a significant overhaul to meet modern living standards."
The couple are keen to avoid relocating too far from their current locale, citing the logistical nightmares of commuting and the disruption to their established lives. "We're willing to compromise, but moving too far out of this catchment area just wouldn't be worth the hassle with work and everything else we have established here," Lottie adds.
Their hard-earned £20,000 deposit, while substantial, still feels insufficient. "It feels like we still have a long way to go," Lottie notes. "We haven't even factored in costs like solicitors' fees or surveys, which could easily set us back between £5,000 and £10,000."
The Wider Struggle: A Nation Feeling the Squeeze
Lottie and Kelly's predicament isn't an isolated incident. New research from MoneySuperMarket’s Household Money Index paints a grim picture, revealing that nearly six out of every ten households (8,000 surveyed) who don't own a home feel "trapped in a cycle of renting."
The sacrifices being made by aspiring homeowners are stark:
- Cutting Back on Essentials: Over a quarter of families have been forced to reduce spending on necessities like food to build up a deposit.
- Selling Possessions: A similar percentage, 25 per cent, have resorted to selling personal belongings to generate extra funds.
- Scaling Back Celebrations: Almost a third of respondents (33 per cent) have significantly curtailed spending on events like Christmas and birthdays.
The primary culprit? The relentless rise in the cost of living. A staggering 68 per cent of those surveyed cited this as the main reason for their difficulty in saving for a deposit.
Strategic Savings: Living Lean for the Long Haul
Lottie and Kelly have meticulously re-evaluated their spending habits to prioritise their homeownership goal. "I can absolutely empathise with people who feel the pressure of rising costs is preventing them from getting onto the property ladder for the first time," Lottie shares. "We both earn decent salaries – our household income is over £80,000 – yet we still have to budget meticulously to save enough for a house. I can't even imagine how it would be possible for someone earning less."
Their savings strategy involved a detailed analysis of their finances. After covering all monthly outgoings, they committed any remaining funds to a joint savings account. Non-essential expenses like television subscriptions and mobile phone contracts were axed, and they actively sought out money-saving deals across the board.
One of their most significant cost-saving measures has been their current living arrangement: residing in the flat above Lottie's pub. While this incurs a slightly higher tax liability due to it being a benefit in kind, the savings on rent and accommodation are substantial.
"We genuinely wouldn't have been able to save this much for a house deposit without our current living situation," Lottie admits. "We have friends and even employees who are shelling out upwards of £1,000 a month in rent, on top of other bills. Plus, I'm saving on travel costs as I live on-site. All of that money goes straight into our savings pot."
A Glimmer of Hope: The "Grey Belt" Development
Amidst these challenges, a potential opportunity has emerged for Lottie and Kelly, thanks to a new housing development earmarked for "grey belt" land. Research indicates that one in twenty young families are now saving specifically to take advantage of new homes being built on these sites.
"Grey belt" land, a term recently introduced by the government, refers to areas previously considered "poor quality and ugly" within the protected green belt. The green belt, established over 70 years ago and covering approximately 13 per cent of England, was designed to curb urban sprawl and prevent towns from merging.
Under a new policy, if local councils fail to meet their housing targets, some existing green belt land can be re-designated as grey belt, opening it up for development. A portion of these new builds are designated as affordable housing.
Lottie and Kelly live just a stone's throw from a planned development on land south of Hyde. They are pinning their hopes on this project providing a genuine pathway to homeownership. The former green belt area has been allocated for 440 homes, with 15 per cent earmarked for affordable housing. A planning application is currently awaiting approval.
"We're really hoping this will be the opportunity we need to finally buy our first home," Lottie expresses. "And because it's a new-build, there won't be the extensive remedial work required that we'd face if we bought an older property."
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