The latest First Time Buyer Index from Aldermore found that 87% of women hoping to buy have dreamt about becoming a homeowner, compared to 71% of men. However, with the current challenging conditions, women are also more likely to feel these goals are unachievable (68% vs 57% of men).
Women are more likely to perceive renting as too expensive (76% vs 67% of men), a likely indication of the increased financial challenges women face. The impact of this is reflected in the Index which shows that women are more likely to see saving for a deposit as the biggest obstacle to buying a home (33% vs. 20% of men). The gender pay gap may be playing a part in purchasing difficulties. It currently stands at 8.6% among full-time employees in 2018, and research from Coreco shows this has led to the average earnings of a female first applicant to be 65% what the average male’s would be.
Women are also less likely to foresee applying for their first mortgage alone (26% vs. 39% of men). The UK Women’s Budget Group estimates that at present women are the ‘household reference person’ in only 31% of cases where someone is buying with a mortgage, according to the most recently available Census data.
Women looking to raise a deposit appear to value their independence with 38% (compared to 28% of males) saying they would not consider living with family to help save for a deposit. Alongside this, the Bank of Mum and Dad is of less assistance with 23% of women saying they will raise a deposit with family help compared to 28% of men, and 12% with help of inheritance compared to 16% of men.
Sue Hayes, Managing Director, Retail Finance, Aldermore, says: “It is concerning to see the barriers to home ownership having a greater impact on women. We need to address financial inequality in our society to help tackle gender disparities so that becoming a home owner is achievable for all.
The house buying journey is a stressful one and can feel very overwhelming for new homeowners. The industry needs to work together to provide a straightforward process and remove hurdles for all first time buyers. At Aldermore, we offer a variety of product choices and personal service to give first time buyers the best possible options in a challenging market.”