e.surv, in its second survey involving 500 practicing valuers and surveyors, has highlighted the strategies and considerations of the UK’s first-time homebuyers.
The survey identifies mortgage rate uncertainty and fluctuating house prices as the primary challenges for aspiring homeowners, with 31% and 29% of surveyors respectively acknowledging these as significant barriers.
In response to these affordability issues, first-time buyers are increasingly choosing smaller, more manageable properties.
Two-bedroom resale terraced houses have become the most popular option, especially in London, where 22% of survey participants recognised the importance of financial support from the ‘Bank of Mum and Dad’ in acquiring a home.
To bolster their purchasing capabilities, buyers are exploring various financing options. This includes 18% considering affordable home ownership schemes, 16% looking at longer mortgage terms, and another 16% open to moving to less expensive areas.
These findings emphasise the proactive steps first-time buyers are taking to surmount affordability barriers and achieve homeownership.
Rob Owens, Head of Research at e.surv, comments on the survey results: “As the housing market continues to evolve, understanding the changing preferences and strategies of first-time homebuyers is critical for real estate professionals and policymakers alike.
“Our survey provides valuable insights into the factors influencing these individuals’ decisions and the creative solutions they are adopting to overcome affordability hurdles.”
Owens adds: “With interest rates for home purchases projected to fall in 2024, the prospect of homeownership may become more attainable for a wider pool of potential buyers.
“The survey findings underscore the resilience and adaptability of first-time homebuyers actively seeking solutions to navigate the current market challenges and achieve their homeownership aspirations.”
