New study reveals mental health issues suffered by first time buyers

Getting on the property ladder has never been just a financial challenge, but a landmark 2018 study from specialist bank Aldermore revealed just how serious the mental health cost can be.

The research found that almost half of recent first-time buyers experienced some form of turmoil in their bid to secure their first property. Stress-related illness, relationship breakdowns, and even career changes were all reported as consequences of the buying process.

And while the property market has changed dramatically since 2018 (through a pandemic, an inflation crisis, and mortgage rate volatility), the fundamental pressures on first-time buyers have only intensified.

Here’s what the research revealed, how the challenges have evolved, and what today’s first-time buyers can do to protect their wellbeing during one of life’s most stressful experiences.

The 2018 Aldermore Study: What First-Time Buyers Reported

The Aldermore research surveyed recent first-time buyers about their experiences. The findings were sobering:

Mental Health Impact:
52% of first-time buyers became ill at some point due to stress, a sharp increase from 35% in 2017. The spike was largely attributed to deals falling through and rising house prices making homeownership feel increasingly out of reach.

Relationship Strain:
46% reported that the relationship with their partner became strained during the buying process. This was up from 34% in 2017, a 12% increase in just one year.

Career Disruption:
43% of first-time buyers who were originally self-employed were forced into employment elsewhere due to difficulties securing a mortgage. This rose from 32% in 2017, reflecting mortgage lenders’ increasingly strict criteria for self-employed applicants.

As Damian Thompson, director of mortgages at Aldermore, noted at the time: “With the average first-time homeowner taking almost six years to get on the property ladder, it is understandable that they will face challenges and hurdles along the way. However, it is concerning how negatively the house buying process is impacting health, personal relationships, and careers.”

But It Wasn’t All Negative

Despite the struggles, the research also revealed remarkable resilience among first-time buyers:

• 72% said the struggle was worth it in the end (up from 53% in 2017)
• 84% found the experience empowering (up from 69% in 2017)
• 72% said that once they were settled in their property, the turbulent experience had brought them and their partner closer together

This suggests that while the buying process is undeniably stressful, most people look back on it as a worthwhile challenge that ultimately strengthened them.

How Has First-Time Buyer Stress Evolved Since 2018?

The property market has been through seismic shifts since the Aldermore study was published in 2018:

The Pandemic Changed Everything

The COVID-19 pandemic triggered temporary property tax holidays across the UK. England and Northern Ireland raised the Stamp Duty Land Tax nil-rate threshold to £500,000, and Wales increased the Land Transaction Tax nil-rate to £250,000. The race for space and tax relief created a buying frenzy, with many first-time buyers rushing to complete before the deadlines, adding urgency and competition to an already stressful process.

Mortgage Rates Spiked

After years of historically low interest rates, 2023 saw mortgage rates peak above 6% following Bank of England base rate increases. While rates have moderated to around 4-5% in 2026, monthly payments for first-time buyers are significantly higher than they were in 2018.

Broader Mental Health Crisis

Mind’s Big Mental Health Report 2025 found that one in five adults in England (20%) are living with a common mental health problem. Separately, ONS data cited in the report shows that 18% of UK adults reported moderate to severe depressive symptoms in April 2025. The cost-of-living crisis, soaring energy bills, and housing costs have created unprecedented financial pressure, particularly for younger adults aged 18-35.

First-time buyers sit squarely in this demographic, facing the compound stress of saving for deposits, navigating mortgage applications, and managing the buying process itself, all while dealing with wider financial pressures.

The Unique Stressors of the Buying Process

Beyond the financial pressure of deposits and mortgages, the buying process itself introduces multiple anxiety triggers:

Transaction Uncertainty

In our experience buying over 500 properties in the last three years, we’ve seen countless situations where first-time buyers have been stuck in limbo for months. Most mortgage offers are valid for about six months, though some lenders offer longer periods for new-build properties and extensions may be possible. Extended transaction times can put buyers at risk of their offer expiring mid-purchase, so it’s important to check the expiry date on your specific offer rather than assume you have longer.

Conveyancing delays, slow solicitors, and chain complications can turn what should be an exciting milestone into months of stress and uncertainty.

Competition and Bidding Pressure

Sealed bids (where buyers submit best-and-final offers without knowing what others have bid) rose from 7% to 29% of all property sales between 2018 and 2022. This creates additional anxiety, with buyers forced to gamble on how much over asking price to offer.

Fall-Through Risk

Industry data shows that around 20% of property transactions fall through before completion. For first-time buyers who have invested months of time, emotional energy, and conveyancing fees, a collapsed sale can be devastating.

Self-Employment Mortgage Barriers

The 2018 Aldermore finding that 43% of self-employed first-time buyers abandoned self-employment to secure a mortgage reflects a genuine problem. Lenders typically require 2-3 years of accounts, higher deposits, and more stringent affordability checks for self-employed applicants.

While mortgage options for the self-employed have improved slightly, many still face the choice between homeownership and career independence.

What Mental Health Experts Say

According to Nicky Lidbetter, who was chief executive officer of Anxiety UK at the time of the study, moving house can be a stressful event for anyone and frequently represents a time of transition and change.

“For first-time buyers, typically young people, this big life event can come at a time when people are already coping with other life stressors including maintaining employment, building relationships, and starting a family,” Lidbetter said.

“As such, I am not at all surprised to hear that their wellbeing has been found to be adversely affected through the buying process, particularly with the rise in house prices. This has been somewhat reflective of the increased rates of anxiety, stress, and anxiety-based depression that we are seeing in all areas of society, and indeed here at Anxiety UK.”

However, Lidbetter noted at the time that buying your first house can be seen as part of the natural progression into adulthood.

“It is something we all have to learn to cope with. Getting through successfully and with relatively little stress is much more likely if you take care of your mental wellbeing, and the good news is that this doesn’t necessarily mean spending more money.”

How to Reduce Stress During the Buying Process

While some stress is inevitable when making one of life’s biggest financial commitments, there are practical steps you can take to protect your mental health:

1. Set Realistic Timeline Expectations

Understanding that the average completion time from offer acceptance is around 28 days (for cash sales) to 3-4 months (for mortgage-dependent chain sales) can help manage anxiety. If your solicitor is taking significantly longer, that’s a red flag.

2. Choose Responsive Professionals

In our experience, 98% of clients say they’re surprised by how quickly the legal side can move when you have the right team. A responsive solicitor who keeps you updated regularly makes a huge difference to stress levels.

Don’t be afraid to ask prospective solicitors about their average completion times and communication style.

3. Understand What You Can Control

You can’t control house prices, interest rates, or whether a seller accepts your offer. But you can control:

• How much you borrow vs. save for a larger deposit
• Which properties you view and offer on
• How quickly you respond to solicitor queries
• Whether you get a mortgage in principle before viewing

Focus your energy on the things within your control.

4. Have a Plan B

One reason chain sales create so much anxiety is the all-or-nothing nature: if one link breaks, everything collapses.

Having a backup plan (whether that’s continuing to rent, considering alternative areas, or exploring different property types) gives you options if your preferred purchase falls through.

5. Consider Chain-Free Options

This won’t be right for everyone, but chain-free purchases remove a significant source of stress. Whether that’s buying a new-build, purchasing from a cash buyer who’s already chain-free, or even considering vacant properties, eliminating chain risk can make the process far less anxiety-inducing.

As Lidbetter noted at the time: “For those with higher levels of stress and who may be at the point of developing an anxiety disorder, we recommend seeking help. Your GP is well placed to provide advice and information. Anxiety UK offers a range of accessible support services, including a national network of trained anxiety experts, developed to fit around people’s modern, busy schedules.”

The Alternative: Selling Without the Chain Stress

For people who need to move quickly (whether due to repossession risk, probate, relationship breakdown, or simply wanting certainty), a cash sale removes many of the stressors identified in the Aldermore research.

At Property Rescue, we’ve completed over 500 purchases in the last three years with an average completion time of 28 days from offer acceptance. We can exchange contracts in as little as 48 hours where speed is essential.

More importantly, 98% of our clients tell us they’re surprised by how straightforward the process is compared to traditional sales. There’s no chain, no mortgage approval uncertainty, no risk of gazumping, and no months of limbo.

Cash buyers aren’t right for everyone. Typically, they’re most appropriate when you need speed, certainty, or have a property that’s difficult to sell on the open market. But for people in those situations, removing the transaction stress can be genuinely life-changing.

Final Thoughts

The 2018 Aldermore research revealed what many first-time buyers already knew: getting on the property ladder is hard, not just financially but emotionally and psychologically.

Eight years later, the challenges haven’t gone away. If anything, they’ve intensified. Longer deposit-saving timelines, higher mortgage rates, and a broader mental health crisis among younger adults mean today’s first-time buyers are under more pressure than ever.

But the research also showed resilience. Most first-time buyers emerge stronger, more empowered, and grateful they persevered.

The key is recognising when stress has become unmanageable, seeking support when needed, and making choices that protect your wellbeing throughout the process.

Buying your first home should be exciting, not soul-destroying. If you take care of yourself along the way, you’ll be among the 72% who look back and say it was worth it.