New reseach finds majority of self employed struggle to get on the property ladder

New reseach finds majority of self employed struggle to get on the property ladder
First time buyers are the driving force of the property market but our Index reveals just how hard it is for them to get on the ladder, even more so for those who are self-employed

The latest Aldermore research has found that almost two thirds of of self-employed people do not know how they will manage to buy their first home.

Aldermore also found that a third of recent first time buyers say they had to give up being self-employed to get a mortgage.

The research highlighted that almost one in three (32%) raising the deposit is the biggest obstacle, whilst 14% said the biggest hurdle is just being able to secure a mortgage. A quarter of first time buyers will rely on their parents for help and over one in 10 (12%) currently trying to save for a deposit say they have taken on a second job to earn extra money.


Concern around mortgage affordability has increased from 6% in Q4 last year to 10%. Of those who have recently bought, the main problem experienced by almost one in five (18%) was saving enough for a deposit, whilst one in ten (10%) found the whole process very difficult. The number of those who will be joining forces with their partner in order to fund their deposit has risen to 45% from 38% in the last quarter, meaning the number of people buying with their partner has also increased considerably from Q4 2016, from 45% to 64%.

When asked what could be done to improve the lot for first time buyers, the key request is to address rising house prices (46%). For two in five (39%), an extension of the Government’s Help to Buy schemes would be gratefully received whilst 30% just want to see the whole house buying process simplified. For 37% of those who are self-employed, introducing better mortgage products is key, as well as adapting the criteria for self-employed borrowers (33%).

Charles McDowell, Aldermore’s Commercial Director, Mortgages, said: “First time buyers are the driving force of the property market but our Index reveals just how hard it is for them to get on the ladder, even more so for those who are self-employed. Low levels of confidence amongst these groups will have ramifications further up the housing chain so it’s imperative that more is done to support both segments of our society, paticularly with levels of self-employment continuing to rise in the UK.

Raising a deposit is something that continues to be cited as the biggest hurdle by first time buyers, with a large proportion unable to do so without family help. With recent data showing house prices increasing by 2% in the month of February, there seems to be no let up for first time buyers who are having to stump up more savings up front. House prices are inevitably impacted by demand and supply and more needs to be done to address the latter.

In the Housing White paper the Government stated it will focus on delivering the right type of housing in the right places through a new assessment of housing needs, and this is something we fully support to better provide for first time buyers."

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Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

It depends on the people, some older adults decide to make a long-distance move in order to live closer to their children or settle in a place with a lower cost of living.

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brandonlee10
brandonlee10 24 Jul 2017

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IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

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IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

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cornishalan
cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

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Jo Mullett
Jo Mullett 07 Jul 2017

Here in Swansea, known as the Japanese knotweed capital of the UK, it never fails to amazes me that people have no idea of the potential problems this invasive non-native plant can cause when buying or...

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NathanG
NathanG 05 Jul 2017

McDonalds, for example, have been purchasing their real estate on prime locations for years. If something happens to the company they'll have invaluable assets that will be able to save them. We might

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Jonah
Jonah 04 Jul 2017

Graham: surprised to see you cite the "extra tax liability" as capping out at ?560. It doesn't - the extra tax is exponential, as it is levied on the income (i.e the inflating level of rental income you...

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Dianne Griffen
Dianne Griffen 29 Jun 2017

Be very wary of anyone bringing you deals that they have ?found? and want to ?sell on to you? or ?joint venture? with you on ? you need a proper legal contract for this, involve a RICs surveyor to confirm...

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jason hadzikostas
jason hadzikostas 28 Jun 2017

The most important thing is a budget. Students have to manage their spendings in food, house maintenance, books and many other things. According to me, student Studios are the perfect option for them as...

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