Figures from specialist bank Aldermore reveal that 1st time buyers in the UK are struggling:
- 26% of British first time buyers say that saving for a deposit is a big obstacle for them as they will need to borrow money from their parents.
- 46% of first time buyers believe that the issue of continuously rising house prices should be addressed as it is proving to be a burden.
- 39% believe the governments ‘Help to Buy’ scheme needs to be extended.
- Shockingly 67% of first time buyers are finding it difficult to get on the property ladder.
- 18% of aspiring first time buyers feel they are pressured to buy a house by their family or partner, meaning they make sacrifices in order to collect enough money for a deposit.
- 30% of them making cuts to how often they eat out. 23% cutting back on holidays, and 21% working longer hours.
- 46% of these people said policies to address rising house prices would help, 39% said they could count on an extension on the governments ‘Help to Buy’ scheme, and 30% just want the whole house buying process to be simplified.
For the self-employed it is an equally challenging time:
- 67% of self-employed people are decisive on whether they will ever be able to buy a home, and a third of them took salaried employment in order to get a mortgage.
- 37% of self-employed house buyers believe better mortgage products would solve their problems.
- 33% say lenders should adapt their criteria for self-employed borrowers.
More people are now joining forces with their partner to fund a deposit, meaning the number of people buying with their partners has increased considerably from 45% to 64%.
A commercial mortgage director has stated ‘first time buyers are the driving force of the property market but we know how hard it is for them to get on the ladder. Deposit funding is something that continues to be the biggest hurdle for first time buyers, with a large proportion of them not being able to get a deposit without help from their family’
The government has stated it will focus on delivering the right type of housing in the right places through a new assessment of housing needs, and that they are going to provide better schemes for first time buyers.