First-time buyers (FTBs) lack the reassurance that they can eventually meet their homeownership goals, according to Moneybox research.
Almost three-fifths (58%) of FTB respondents had pushed back their buying goals and now plan to buy later than previously hoped.
In addition, 40% of first-time buyers admitted to feeling ‘worried’ when viewing news and recent updates on mortgages and house prices.
Brian Byrnes, head of personal finance at Moneybox, said: “With the Chancellor set to give his Autumn Statement later today, it’s clear that aspiring first-time buyers are worried.
“And, there can be no doubt that support is needed as it has become increasingly difficult to get on the property ladder in recent years.”
He added: “Saving for a deposit remains one of the biggest hurdles many face on the journey to buying a home and that is why the Lifetime ISA is such a lifeline to so many.
“Whilst it is important to also consider supply side reform, many of the solutions needed to address housing supply and barriers to entry are complex and will take some time to bear fruit.
“And so, we passionately believe that what is needed now are pragmatic measures that can be delivered in the near term which will help aspiring first-time buyers navigate the current economic landscape with greater confidence and continue making progress towards their homeownership goals”
Byrnes continued: “Future-proofing the Lifetime ISA property price cap is therefore a step we’d like to see the Chancellor take today.
“The LISA property price cap currently allows people to use their savings towards a first-time property valued at £450,000 or less.
“While less than 1% of Moneybox LISA savers have been affected by the property price cap to date, if the price cap had risen in line with house prices since its introduction in 2017, it would stand at £560k today.
“By introducing an index-linked price cap subject to an annual review, we believe the Government can provide much-needed reassurance and peace of mind to aspiring property owners across the UK.
“Not only this, but it would help to instil confidence in the thousands of younger people embarking on their LISA journey today.”
