55% of aspiring first-time buyers with a deposit in place are holding off on buying as a result of Brexit, the equivalent of at least 136,000 people across the UK, according to new research from financial services provider OneFamily.
75% of those holding off on account of Brexit say that the economic future is simply too uncertain to buy a property at the moment.
According to Halifax’s latest house price index, the UK’s property market is at its weakest in six years, leaving 65% of first-time buyers ready to buy believing that doing so before Brexit would be a bad financial decision. The majority of (55%) of them are therefore delaying their purchase as they think they will be able to get more for their money after 29 March this year.
22% of first-time buyers will purchase a property before Brexit, with common reasons including they have already found their ideal property and they don’t mind losing money on it (29%) and they have waited long enough (22%). Just 15% say they don’t think Brexit will affect property prices.
At the present times, 57% say that high property prices are preventing them from buying a home, but if the market were to dip post-Brexit the situation could be quite different.
19% of those who are currently saving to buy their first property say that they would be able to buy if house prices dropped by 5%, with a further 30% able to buy if they dropped by 10%.
Nici Audhlam-Gardiner, managing director of Lifetime ISAs at OneFamily, said: “At times of uncertainty it’s always hard to know what to do, and many would be homeowners would benefit from the reassurance of speaking to a financial adviser to help them understand the options available to them.
“While any market fluctuation as a result of Brexit could give first-time buyers a golden opportunity to get on the housing ladder, it could just as easily make it harder.
“If your clients are thinking of waiting a little longer it provides them with a good opportunity to boost their savings toward their first-home. The Lifetime ISA that replaces the Help to Buy ISA, that closes this year, gives first-time buyers a 25% boost to their savings on up to £4,000.”