Survey highlights aspiring homeowners’ hurdles
Many people have significantly delayed their dream of owning a home in today’s
challenging economic landscape. Recent findings reveal that one in five prospective
homeowners expect to wait until at least their forties to purchase their first property.
This data, collected by the Nationwide Building Society, highlights a shift from the
current average first-time buyer age of 33 as the cost-of-living crisis continues to impact
financial decisions.
COST-OF-LIVING IMPACT
The survey highlighting aspiring homeowners’ hurdles indicates that 84% of respondents
have felt the sting of rising living costs on their homeownership plans.
Nearly half, at 49%, have postponed these plans due to affordability concerns, with 60%
delaying by up to three years. When asked about the most significant barrier to
buying their first home, 31% cited saving for a deposit as the primary challenge.
However, affordability issues extend beyond deposits.
AFFORDABILITY CONCERNS
A significant 44% of potential buyers face affordability issues, with 20% needing help finding properties within their budget, 14% needing help managing monthly repayments, and 10%
finding it difficult to secure sufficient mortgage loans. These challenges underscore the
urgent need for solutions, prompting Nationwide to advocate for an independent review of
the first-time buyer market.
FINANCIAL STRUGGLES
For those striving to save, the path is arduous. More than a quarter of prospective homeowners have been saving for their deposit for three to five years, and 10% for even longer.
Despite these efforts, over half (52%) report having less disposable income to save due
to escalating costs, with 29% acknowledging that financial pressures have reduced
additional support from family.
THE DEPOSIT GAP
The survey reveals a stark contrast between the average deposit savings of £9,533 and the £22,400 required for a 10% deposit on a typical first-time buyer home, as per Nationwide’s House Price Index. Alarmingly, over half of these potential buyers have only up to £5,000 saved, with 26% having a mere £1,000 and 11% lacking any savings for a deposit.
EXPLORING ALTERNATIVES
The financial strain extends to mortgage payments, with 80% expressing concern over
increasing rates and rising bills. Many face these challenges, exploring alternative options,
including sharing purchases with partners or family members.
A notable 55% are open to relocating to more affordable areas, with 70% willing to move
up to 50 miles to secure a home.
>> READY TO TALK MORTGAGE MATTERS? <<
If you are seeking further guidance on navigating the complexities of homeownership in today’s economic climate, please contact us for more information and support.
Cedar Crest Ltd – telephone UK T: +44 (0) 203 883 1017,
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+44 (0) 7888 431091
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– email info@cedar-crest.co.uk
Your home may be repossessed if you do not keep up with repayments.