Eight in ten first-time buyers say owning own home is more important than ever

18 June 2023 , 08:00

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A quarter of aspiring homeowners are hopeful they will be able to buy in the next 12 months (Image: SWNS)

Four in five aspiring first-time buyers say that owning their own home is now more important than ever – with 24% hoping to buy within the next 12 months, a study has found.

Four in ten feel optimistic about becoming a homeowner – seemingly unfazed by the cost-of-living crisis, mortgage market volatility, and rising interest rates.

In fact, a fifth, of 1,000 hopeful first-time buyers in the UK, believe the cost-of-living crisis is slowing down, and that this will boost their chances of home ownership.

Those who are saving towards a deposit are managing to put away an average of £344 a month – with 24% saying this is more than they anticipated saving.

And 21% have been encouraged by the introduction of 100% mortgages, and predictions that house prices will fall.

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While 20% have seen rising interest rates boost their deposit funds – and 22% say their household income has gone up in recent months.

One in four say they have been able to save more than anticipated towards a deposit (Getty Images)

However, the study, which is carried out twice a year by Moneybox Homebuying, also compared the general feeling among aspiring first-time buyers to this time six months ago.

And it emerged that 37% still remain pessimistic about their chances of getting a foot on the property ladder.

The number of people hoping to buy in the next 12 months (24%) has gone down from 35% six months ago.

And optimism surrounding first-time buying was also slightly higher six months ago (42%) compared to now (40%).

Two in five (41%) also feel their homebuying plans have gone backwards in the last six months – although this has dropped from 68% who felt this way half a year ago.

And on average, hopeful buyers anticipate it will take another three years to get their foot on the ladder, having started saving three years ago.

Cecilia Mourain, managing director of Moneybox Homebuying, said: “The property market is ever-changing, but we know the volatility of the last six months to a year has been unsettling for many.

“Yet despite this, the desire to own a home has increased significantly, and pragmatic first-time buyers remain remarkably resilient, adapting to the changing market conditions and remaining optimistic as they work towards their goal.

“When it comes to buying your first home, more often than not, the right time to buy is when you are ready.

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“Seeking advice from home-buying experts will help you dial down the noise, and thoroughly prepare for your home-buying journey, with greater confidence.”

The study revealed that owning a home is more important than ever for 81% – up from just 63% in 2022.

This is primarily motivated by wanting to feel more financially secure (56%), to be more independent (55%), and to have control over their own home, rather than a landlord (53%).

But more than three in ten have had to compromise on a property's location, or its features (SWNS)

But of course, it's not all been plain sailing for first-time buyers in recent months – as nearly six in ten (58%) found the cost-of-living crisis is impacting their disposable income, making it more difficult to save a deposit.

And 30% have had to reduce the amount they are saving towards their first home deposit in the last six months.

Meanwhile, almost half (46%) are concerned rising interest rates have been making mortgages less affordable, according to the research, conducted via OnePoll.

In response to these market conditions, 61% of aspiring first-time buyers have taken some pragmatic steps to adjust their home-buying plans this year.

These include planning to buy later than originally hoped (55%), building a larger deposit (34%), and making compromises on property location (32%) or features (30%).

In fact, one in five (21%) would consider a zero-deposit mortgage, and 15% are open to a longer-term mortgage.

Cecilia Mourain, from Moneybox Homebuying, added: “Buying a home is such an important life goal for so many – it can be overwhelming trying to figure out the best options for your needs, and the implications of changing market conditions.

“And so, it's no surprise that in the last year, we’ve seen a significant increase in the number of first-time buyers, coming to us for home-buying and mortgage advice – in many cases, long before they are ready to make a mortgage application.”

Sarah Lumley