Average wait for homebuyers now stands at 3.2 years

Average wait for homebuyers now stands at 3.2 years

New research commissioned by Gocompare.com Mortgages, has found that due to high property prices, affording a deposit and associated costs are the biggest barriers to buying or moving home.

Over half (51%) of Brits are considering buying their first home or moving house according to new research released today.  But, high property values in the area they want to move to together with the associated home-buying costs, mean that many (61%) are unlikely to move in the next 12 months.

The research found that those considering buying or moving home have been thinking of doing so for an average of 3.2 years.

High property prices in the area they want to buy (22%), getting enough money together for a deposit (18%) and the associated costs of buying a property and moving (11%) were cited as the biggest obstacles to their plans.  Other barriers to moving home include a lack of availability of the type of property in the area they wish to live (11%), job or income insecurity (10%) and the ongoing costs of running a home including mortgage repayments, utility bills and council tax.

The survey found that while high property prices are a key obstacle for all would-be home movers, other difficulties varied considerably with age.  For example, 45-54 year olds cite a poor credit history or credit score (14%) and job/income insecurity among their top three barriers to buying or moving home.  For those in the 55-64 and 65+ age brackets, the main obstacle they face is a lack of availability of the type of housing they wish to move to in the area they want to live in.


Matt Sanders, spokesman for Gocompare.com Mortgages said: “Affordability is a big concern for both first-time buyers and those wishing to move-up the property ladder.  According to the Office for National Statistics**, house prices are continuing to increase due to rising demand and a lack of supply.  The average house price in the UK now stands at £288,000 and with house price inflation exceeding wage growth it’s even harder to save enough money for a deposit – potentially putting homeownership out of reach for many people.        

But there is some good news.  Recently there has been a resurgence in the number of lenders offering low-deposit mortgages.  Most lenders now have a mortgage product aimed at homebuyers with a deposit of 10% of the purchase price of their property and, subject to stricter eligibility criteria, some lenders offer 5% deposit mortgages.

Buying a home and repaying a mortgage will probably be the biggest expense most of us make – so it’s important to do your research to make sure you get the best deal for your circumstances.  The obvious advantage of a low-deposit mortgage is that you’ll be able to buy a home or move sooner, but, interest rates and fees for these products tend to be higher than for mainstream mortgages.  So, if you are concerned about the ongoing costs of homeownership, then it might be better off saving for a higher deposit.”

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Latest Comments

Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris
Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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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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