65% of those under the age of 30 plan to buy their first home or move house during the lifetime of Help to Buy, according to Mortgage Advice Bureau.
More than one in three adults below 30 have ambitions to buy their first home before the end of 2016 (38% compared to 14% of all adults), while more than a quarter plan to move house (27% compared to 21% of all adults).
Young adults show the biggest change in attitude towards property purchases as a result of Help to Buy.
30% of 18-29s are more likely to buy a new build home now that government support is available, compared with 13% of all adults. The Help to Buy equity loan has already impacted activity in the new build market with over 12,500 reservations in its first five months.
Unlike part one of the Help to Buy scheme, the new mortgage guarantee – offering loans of up to 95% – is available on all property rather than just new build homes. 20% of young adults already say they are more likely to buy a ‘second-hand’ home as a result of Help to Buy, compared with 12% of all adults.
Ahead of the launch of the mortgage guarantee – brought forward by three months to October 2013 – public awareness of Help to Buy trailed behind shared ownership schemes and Right to Buy.
Among homeowners and those actively looking to buy a home, 77% were aware of shared ownership schemes while 59% knew about Right to Buy. In contrast, 37% had heard of Help to Buy equity loans while 32% knew of Help to Buy mortgage guarantees.
Awareness of Help to Buy was significantly higher among adults below 40, who are more likely to be furthest down the property ladder. 42% of five adults aged 18-39 knew of the equity loans (vs. 31% aged 40+), while 36% had heard about the mortgage guarantees (vs. 28% aged 40+).
Awareness was greater among men than women: 42% of men knew about the equity loans (vs. 34% of women) and the same percentage was familiar with the mortgage guarantee (vs. 28% of women).
Homeownership remains an important goal for 79% of UK adults with 55% feeling it is very important.
Just 1% of 18-24s feel homeownership is not important at all and just 5% of all adults.
Brian Murphy, head of lending at Mortgage Advice Bureau, said: “It’s clear that consumers are crying out for better access to mortgages and the second part of Help to Buy – the mortgage guarantee – brings existing properties into play alongside newly built homes. It means the appeal of government support will extend to a wider audience which can only help towards fulfilling homeowning ambitions.
“There is a big difference between an equity loan and a 95% mortgage, so anyone looking to buy needs to understand the pros and cons to decide which option suits them best. Lenders will need time to finalise their offers, but competition is sure to improve. The Help to Buy guarantee will ultimately improve the availability of genuine, affordable 95% mortgages: products which are an essential part of a healthy, sustainable market.
“Raising a deposit is the biggest challenge buyers face and the guarantee will help them over this initial hurdle, leaving them with monthly payments they can afford. It will also mean homeowners with limited equity have better prospects of moving up the property ladder, which in turn frees up more homes for first time buyers.”