It has been revealed that first-time buyers find it increasingly harder to secure their first home. A total of 22% of aspiring first-time buyers in the UK are currently living with their parents, whilst 26% believe they will have to do so for over five years to save for a house deposit. A further 10% believe they will have to stay with their family for three to four years.
The situation is looking increasingly bleak for the mindset of first-time buyers as 31% strongly agree that buying a home is completely unrealistic for them at the moment, a belief that is consistent quarter on quarter. The latest quarterly first-time buyer index from specialist bank Aldermore suggests that those looking to climb onto the property ladder do not believe that the Government is doing enough to support the first-time buyer sector, despite any Help to Buy schemes introduced in recent years.
A quarter of aspiring first-time buyers hold the belief that the Government should address the issue of rising house prices. This percentage rises to 31% in the capital. A further 10% believe that building more new homes should be a priority whilst 14% think that bank and building society criteria need adapting to help first-time buyers more.
In total, 91% think that getting onto the property ladder is difficult. However, this figure slightly drops from 94% in the last quarter. The biggest obstacle first-time buyers seem to face is raising a deposit, with 35% believing this is a bigger issue than rising property prices which are a concern for 26%. Unsurprisingly, that figure is slightly higher in the capital, where 41% of Londoners believe prices will obstruct them from getting onto the ladder.
Further, the report found that at 22%, just over a fifth of aspiring first-time buyers are planning to use parental or family assistance for their deposit, rising to 27% in London. Those planning to use their savings to fund the deposit have risen by 5% since the last quarter to 23%.
First-time buyers face numerous obstacles and will experience difficulty getting on the property ladder. More and more people are choosing to move back into the family home to boost their savings as the deposit remains the largest obstacle. It is a belief by many that first-time buyers are the driving force of the housing market, thus more needs to be done to help them as it is likely to remain difficult for the foreseeable future. Though one clear thing is that levels of low confidence among this group are impacting the higher end of the housing chain, hence help is needed.
The new government is now being relied on by first-time buyers and is being called to offer solutions. However, following how Theresa May’s snap election ended and formed a minority with the DUP, housing policy is unlikely to remain the same and will be reviewed again under the newly appointed housing minister. And this only means further uncertainty.