First-time buyers (FTBs) aged 18 to 34 primarily rely on advice from family and friends (39%) rather than a broker during the homebuying process, according to research from Coventry for intermediaries.
The research, conducted in partnership with the Centre for Economics and Business Research (Cebr), showed that while 90% of the youngest demographic of FTBs, 18 to 24, used a broker, but only 33% relied on them specifically for guidance and information when buying their first home.
The research also highlighted an opportunity for brokers to support these younger clients earlier in the process, with two fifths (40%) of all first-time buyers surveyed saying they needed more help and information on applying for a mortgage.
A further 36% also wanted more guidance on the exchange of contracts and the costs of buying a home.
FTBs have also been subject to cost of living pressures and high inflation, with a third (33%) of those aged 18 to 34 saying they found it difficult to secure a mortgage.
Coventry for intermediaries’ research does show that FTBs who used a broker during their homebuying journey benefitted from the guidance they provided – 96% said brokers played an important role in their experience as a first-time buyer.
Jonathan Stinton (pictured), head of intermediary relationships at Coventry for intermediaries, said: “Buying a home is an exciting milestone for first-time buyers, and it’s only natural that they would lean on friends and family for advice, as in many cases they would have already been through the homebuying process themselves.
“However, our research shows there is an advice gap between younger first-time buyers who need extra support and guidance on the fundamentals of buying and who they are relying on to provide this level of support.
“Brokers should be the go to source of advice in the mortgage industry and can guide new buyers through the current market and the different stages of buying a home.”
He added: “For younger people who are finding it more challenging in this economic climate, brokers are in the perfect position to help these borrowers find a mortgage deal that could enable them to take their first step onto the ladder.
“For brokers, these buyers also represent an excellent opportunity to build up a new base of future clients by providing them with tailored advice.
“By positioning themselves as market experts, brokers could turn today’s first-time buyers into repeat business for the years to come.”
