Prospective first time buyers still view buying a home as challenging, with a worrying sixty four percent believing that achieving homeownership is currently a pipedream for them.
According to the latest analysis from Aldermore, 29% said that getting on the property ladder is very difficult with raising the funds for a deposit the main obstacle.
However, Aldermore found that despite deposit issues continuing to be the biggest obstacle to buying a home, it is on the decline. Aldermore found that there has been a decrease from 40% in 2018, suggesting options to assist such as low-deposit mortgages and saving schemes like the Help to Buy ISA have eased this particular challenge for some. Finding an affordable property was seen as the second largest hurdle (23%).
Pressure from family to buy
Housing buying in Britain is still very much the norm, often considered a step towards adulthood. And while it’s something most young adults aspire to (81%), it is also something that is expected of them by their family, and this can add to the stress. One in four (28%) would-be first time buyers say their family are putting them under pressure to own a property and 60% feel that buying a house is expected of them at their current age. In addition, nearly a third (29%) of prospective first-time buyers are currently living with friends or family to help save for a deposit, and a further 38% would consider it in the future, which could be adding to the feeling of family pressure.
Extra unexpected costs add to the toil
A third (32%) of recent first-time buyers experienced a property sale fall through before buying, resulting in an average loss of £2,157, rising to an average of £2,855 in London, and this causes an average delay of seven months. This in part added to the three-fifths (57%) of recent first time buyers who say they spent more than intended. It appears many still see the fundamental parts of the home buying process remain tricky, with three in five (60%) agree that the process is overly complicated and 39% said the stress of the buying process made them feel ill.
Damian Thompson, Director of Mortgages at Aldermore, says: “First time buyers are a key driver of the mortgage market and the desire to own your own home remains a strong aspiration in the UK. It is concerning to see so many first time buyers find the home buying process difficult and stressful, especially as by contrast they are overwhelmingly positive about actually becoming home owners2. Understanding the difficulties and unique challenges this generation of new buyers face is vital so the industry can work better together with brokers to make the journey as enjoyable and rewarding as the destination.
At Aldermore, we provide a personal approach to lending that guides new buyers through the process and considers each case on an individual basis. Making the home buying process easy to navigate and inclusive process, that doesn’t put barriers in the way of worthy borrowers, should be what the industry is working towards.”
To speak to one of out team please call Belvoir Liverpool Central on 0151 231 1613 or eamil liverpoolcentra@belvoir.co.uk
