Mixed picture of the plight of first-time buyers
Recent media coverage is giving a mixed picture of first-time buyers. On the one hand there are reports of research showing that first-time buyers are having to wait longer than planned to climb on to the first rung of the property ladder. This research includes the statistics that 65% of first-time buyers have had to wait longer than planned for their first home whilst only 8% were able to become a home owner more quickly than they expected. 17% of those waiting longer than planned are waiting between one and two years longer.
However this is somewhat contradicted by research from Saga which looked a house purchase sentiment comparing younger buyers with older buyers. This found that members of the younger generations (18-34), a group likely to contain a significant proportion of first-time buyers, were feeling more positive about their prospects of house purchase when compared with older buyers.
Lynne McCaffrey, Head of Property comments:
“There have been many reports recently signalling the end of the first-time buyer and yet there have also been numerous reports which see signs of recovery in the first-time buyer market. It’s hard to draw firm conclusions from these.
“There is, however, a common thread that runs through these mixed messages I believe. That is one of sentiment. When you buy your first home it is a significant and momentous decision. As such it will be one that is planned for and carefully considered over a significant period of time. When you are a first-time buyer you are looking for help buying your first home and it follows that whether or not you receive that help will determine how you feel about your prospects of house purchase.
“With recent economic and political events this does remain a challenging time to buy your first house and whilst there are those who feel upbeat about their opportunity to do that there are also many who will wait for longer than they had hoped to get the keys to their first home of their own.”
Content correct at time of publication