Aldermore’s latest quarterly First Time Buyer Index has found that the process of buying a first property causes so much stress for some people it has made them ill (35%) or caused issues in their relationship (34%).
The bank’s figures show that 17% of recent first time buyers took three or more attempts to buy their home, while 27% had to delay by more than two years. The impact of the buying process even resulted in 40% of respondents feeling like they have had to rebuild their life due to the compromises they had to make to get on the housing ladder.
The Index also reveals the most common hurdles recent first time buyers had to overcome and the sacrifices they made in order to buy their first home. The main challenge for 18% of respondents was raising a deposit – 20% had to wait between six to 10 years to save enough money. In order to do so, 37% cut back on taking holidays and eating out.
9% found the actual process of securing a mortgage the biggest difficulty, and 10% cited the whole buying process as the biggest problem. For a further 8% of first time buyers it was the length of the purchase process.
When asked what could be done to improve the situation, 32% recent first time buyers requested the issue of rising house prices to be addressed. For 34% of respondents, simplifying the whole buying process would help, while 30% believe the situation would improve if better mortgage products were available.
In the end though, the positives outweigh the negatives. 73% of recent first time buyers felt like they had reached adulthood when they got the keys to their first home, and 69% found that putting their own stamp on their new home to be an empowering experience.
75% of recent first time buyers feel they are no longer wasting money on rent, and 70% believe owning their own home gives them financial control.
Charles McDowell of Aldermore said: “Our latest quarterly first time buyer index reveals the issues recent first time buyers have faced when getting on the property ladder and the impact this is having on their day-to-day lives. Buying a first home is an empowering experience and can provide financial control, but our research shows the sacrifices being made by first time buyers to reach that first rung of the property ladder are negatively impacting their health and personal relationships.
“The affordability ratio has doubled since 1997, demand is currently outmatching supply, and these difficulties are directly impacting first time buyers’ wellbeing. First time buyers are the driving force of the property market, but they are currently being priced out. More needs to be done to tackle these issues to ensure they have the best opportunity to buy their dream home.
“Almost one in ten (9%) found the process of securing a mortgage the biggest difficulty which is why at Aldermore we are committed to helping to those who are struggling to gather a deposit by offering a range of products, including the family guarantee mortgage and 95% mortgages for customers who have a smaller deposit.”
