New analysis from My Home Move has revealed that aspiring first time buyers remain ‘hopeful and confident’ about their chances to get a foot on the property ladder with 57% of respondents expecting to buy their first home by 2021.
According to the results of the survey, those over the age of 23 revealed a disparity between their home ownership aspirations and childhood expectations.
When asked, ‘by what age did you think you’d buy your first home when you were growing up?’ the majority answered age 25 or 30.
For those who are now in their late 30s, 40s, 50s and 60s, this means they are years and even decades older than they expected to be, when they dreamed they would buy their first home as a child - suggesting there is a ‘missed generation’ of first-time buyers. (See chart one)
Doug Crawford, CEO of My Home Move, had this to say: “For many Brits the idea of home ownership is still the thing they aspire to the most. It offers security and a sense of achievement in a world that can be fractured and stressful. Of those we surveyed, over a quarter expected to be home owners by the time they hit their mid-twenties, but unfortunately the reality is very different.
Our findings showed that we have a ‘missed generation’ of first-time buyers, those who are now into the 30s, 40s, 50s and even 60s, who are still struggling to get on the property ladder. Having grown up in the 1970s and 1980s, when home ownership figures overtook that of renting for the first time, it’s not surprising that these children believed they too would be home owners in their twenties.”
When questioned how they expected to afford their new home, 72% of the aspiring first-time buyers said they were saving for their deposits themselves, however they also expected to need additional support from friends, family and the Government – suggesting the missed generation of first-time buyers are in need of double the support to afford their first step onto the property ladder.
Only, 6.2% of respondents believe the Bank of Mum and Dad would gift them enough money for a deposit, meaning they could apply for a mortgage without the need for further savings or support through the Government’s Help to Buy schemes.
Looking at the regional breakdown, those surveyed in London represented the highest proportion of would-be first-time buyers who were expecting to receive a gifted deposit that would be enough to secure them a mortgage (15.7%); while an additional 13% were expecting to have to top up their gift with additional savings, as property prices are rising.
In comparison, only 6.8% of aspiring homeowners in Yorkshire and Humberside expected to be gifted money, with 3.4% believing that they would have to top up their gift with savings.
Overall the Government’s Help to Buy: Equity Loan scheme was more popular than its sister scheme the ISA, with over 10% of aspirational first-time buyers in London and the North East planning to buy their first home through the Equity Loan scheme.
Doug continued: “In today’s market, with its continued lack of housing stock and high property prices, would-be first time buyers have to take advantage of every revenue stream available to them. For many, years of hard saving are not enough to afford them their first home, having to be supplemented with gifted deposits and Government support.
Come next month, My Home Move will be holding its annual Housing Conference to discuss what more can be done to ensure future generations of aspiring first-time buyers don’t miss out on their chances of joining the property ladder. The event will look at how technology can be harnessed to help ease the pressures affecting the property market, while meeting the needs and growing expectations of today’s home buyers.”