The research, which was conducted both before and after the EU referendum, found there were similar levels of confidence from first-time buyers looking to purchase their first property in the next 12 months.
According to the research, around a million people who have never previously owned a property are planning on purchasing their first home in the coming year.
The study also found that 95% of first-time buyers admit they are finding it difficult to get on the housing ladder, with almost four out of every 10 (39%) saying it is ‘extremely difficult’.
Mortgage affordability is only a minor issue. Only 5% of respondents listed mortgage affordability as their main barrier, with fewer that one in ten (7%) of FTBs citing difficulties securing a mortgage. Raising a deposit has overtaken property prices as the main obstacle FTBs face (39%) compared to the previous survey, up from 36%.
Less than one in five (16%) are planning on funding the deposit from their savings without any additional help, down from 18% prior to the EU referendum.
The study, carried out by YouGov, explores how confident those currently looking to buy their first property feel, and what the biggest hurdles are when trying to get on the housing ladder. Less than one in 10 (7%) responded that securing a mortgage was their main issue, with even fewer (5%) saying mortgage affordability was their biggest barrier.
When it comes to applying for a mortgage, nearly twice as many prospective first-time buyers are planning to apply jointly with their partner (48%), compared to just over one quarter (25%) of people doing it on their own.
First home is not a family affair
Being close to family when choosing a first property was only listed as important to a quarter of respondents (24%), with almost double choosing a garden (47%), almost two fifths choosing a drive or off road parking (38%) and a third listing double glazing (33%).
Charles Haresnape, Group Managing Director Mortgages at Aldermore, said: “Our research, conducted both immediately before the EU referendum and after the initial period of uncertainty following the Brexit vote, shows that first-time buyers’ mind-set remains almost entirely unchanged on their plans to purchase their first property.
First-time buyers are the driving force of the property market, and the levels of confidence and economic outlook have large-scale ramifications further up the housing chain. Tracking the changing attitudes of those looking to buy their first property is an important part in assessing how the market can be adapted to work in the best interests of all those looking to make their dream of owning their own home a reality.
While around a million people are looking to get on the housing ladder in the next twelve months, trend data shows only around a third or so will actually achieve that goal, with the number of first-time buyers in the last two years in the region of 300,000.
A huge focus on securing a mortgage masks the issues that many have reported in raising the initial deposit, with a large proportion unable to do so without family help at a time of rising rental costs across the country, with three quarters of respondents considering the Help to Buy (HTB) scheme. While the HTB mortgage guarantee scheme is ending in December, Aldermore will continue to support the large demand from borrowers looking for higher LTVs through the equivalent Mortgage Indemnity Scheme.
While certain lenders offer options such as our Family Guarantee Mortgage, sluggish wage growth and the difficulty of funding a deposit are likely to be responsible for many of the two thirds who don’t manage to buy a property within a year.”
