Striving FTBs remain confident

Striving FTBs remain confident

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.”


Affordability

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.”

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Latest Comments

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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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

The financial ramifications of the triggering of Article 50, the starting gun for Britain's departure from the EU, are far from clear. Buyers will be most cautious in London, given that buying a home in...

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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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