Deposits less of an obstacle for first-time buyers
First-time buyers still believe that getting onto the property ladder is difficult, however deposits are becoming less of an obstacle, according to research from Aldermore.
Year-on-year, perceptions amongst first-time buyers remain gloomy, with over one in four (29%) saying that getting on the property ladder it is very difficult and many more believing it is a pipedream (64%).
However house price stagnation seems to have made deposits more achievable for the average first-time buyer. Last year 40% of all prospective buyers considered it their biggest obstacle, compared to just 28% in 2019.
House prices across the country have grown by just 1.2% in the past year, with London house prices falling at the fastest rate in 10 years.
According to the latest data from UK Finance, the number of mortgages for first-time buyers rose by 0.5% on last year at 30,720.
Aldermore says schemes such as Help to Buy, shared ownership, the H2B ISA and stamp duty cuts, are also further helping first-time buyers achieve their goals.
Damian Thompson, director of mortgages at Aldermore, said: “There’s no denying that the housing market has tipped in favour of first-time buyers and it is disheartening to see that so many have the perception that getting onto the housing ladder is still very difficult. Buying a home for the first time can be stressful but there is plenty of support for first-time buyers.
“Finding the right route can make the difference when it comes to achieving your property aspirations. This is why have produced a guide to help first time buyers navigate the products and schemes available, with the aim of demystifying the process a bit.”
Source: Financial Reporter