Fifth of Gen Z would move further for affordable homes as deposits fall – Barclays
Data showed the average deposit fell 16.4% year-on-year in May to £57,209, but deposits remained the biggest barrier to homeownership for renters.
A fifth of Gen Z would move more than 25 miles for affordable housing, with price their top priority when looking for a home, according to data from Barclays.
Data showed the average deposit fell 16.4% year-on-year in May to £57,209, but deposits remained the biggest barrier to homeownership for renters.
London saw one of the sharpest drops in deposit size, down 27.2% to £136,057, while the South East and East Anglia also recorded significant decreases.
In Northern Ireland, deposits increased to £41,008.
Confidence in the UK housing market strengthened to 26% in May, up from 23% in April.
However, delays in buying and selling rose, with nine in 10 buyers and sellers reporting issues, mainly due to conveyancing or estate agent delays.
The average time from mortgage offer to completion went up 21.7% year-on-year.
Nearly a third of consumers said they were more likely to delay moving because of economic uncertainty and are increasing savings or cutting back spending.
Data also showed that remortgage activity is growing, with more than two-fifths of mortgage holders now more likely to lock in their rate early.
Remortgage completions made up 40.6% of Barclays activity in May, up from 30.7% last year.
Jatin Patel, head of mortgages, savings and insurance at Barclays, said: “Adaptability has become the hallmark of the modern buyer.
“First-timers remain constrained by affordability, but will be flexible to achieve their goals, making trade-offs on location or property features to get on the ladder.
“Meanwhile, existing homeowners are acting more decisively, with many locking in rates earlier, or shifting their plans in response to volatility.”
Patel added: “Together, these trends may make for a more complex housing landscape, but reflect a clear determination among consumers to take control of their financial future.”
Julien Lafargue, chief market strategist at Barclays, said: “The expected reopening of the Strait of Hormuz and the associated drop in oil prices mean that inflationary pressures may be more contained than feared in the coming months.
“This should give the Bank of England some breathing room, allowing the central bank to keep interest rates unchanged for the time being.
“Although any renewed political uncertainty could represent a headwind in the short-term, the picture appears to be gradually improving for the UK real estate market.”
Related
Own Homes calls for Government and private sector collaboration to help renters raise deposits
More second-steppers rely on higher LTV mortgages – Barclays
More adults support local housebuilding than oppose it – Barclays
Discounted Market Sale homes could unlock stalled housing sites without public subsidy – Savills
64% of FTBs rely on side hustles to save for home deposits – Mojo Mortgages
Almost half of Scottish non-homeowners believe they will never buy
Market Harborough Building Society launches Rent to Own initiative
VIVID completes 16 affordable homes in West Wittering
UK homebuyers less willing to compromise than overseas buyers, study reveals
Valleys to Coast secures £16.7m funding to deliver 98 affordable homes in South Wales
56% of prospective FTBs believe it is difficult to get a mortgage, YBS finds