29% of prospective first time buyers say that getting on the property ladder is very difficult and 64% believe achieving the goal is currently a pipe dream for them, according to research from Aldermore’s First Time Buyer Index.
28% of those looking to buy their first home say raising a deposit was the biggest obstacle to doing so, 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%).
While home buying is 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. 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, 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.
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 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, said: “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 owners.
“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.”