First time buyers are determined to buy a home
Despite the economic challenges created by the Covid-19 pandemic, it appears that first time buyers are more determined than ever to get a foot on the property ladder.
New research from Yorkshire Building Society has found that the dream of homeownership is truly alive and kicking.
61% of those surveyed said that buying a home is more important to them now than it was when the pandemic started in March.
More than a third said they expected to buy their home sooner as a result of the pandemic, and nearly half said they had been able to save more for their deposit due to the impact of Covid-19.
Despite this clear goal to become homeowners, buyers still face considerable challenges when it comes to buying their first home.
The average amount saved by prospective buyers is £336 a month. Based on this level of savings, the Society estimates that it will take a single person seven years and 5 months to save up a 15% deposit for the average first-time buyer home, with a value of £198,512.
To speed things up, half of the first-time buyers are seeking financial assistance from their family.
One factor that could help people to become new homeowners is a higher loan-to-value mortgage, requiring a smaller deposit.
Ben Merritt, Mortgages Acquisition Manger at Yorkshire Building Society, said:
“Getting on the housing ladder seems to be more important now than it ever was. Whether it’s being in shared rented accommodation whilst juggling home and work life, or spending lockdown back in the family home, the pandemic has clearly increased the resolve of first-time buyers who have increased their savings and are more determined than ever to buy their first home.
“It’s a real priority and life ambition for many people, but getting there still remains a challenge which is why we are seeing many lean on relatives for support with deposits. Despite the lower availability of higher LTV products, there are options available to first-time buyers and so it pays to do your research to help you get the support you need.”