Nearly half of prospective first-time buyers are delaying their homeownership due to high property costs, with 44% reporting they cannot purchase right now.
Aldermore’s latest First Time Buyer Index revealed that many buyers expect to add two years or more to their journey.
First-time buyers had been saving for about five years but now almost half (48%) face delays of up to a year, and nearly a quarter (22%) expect delays of two years or more because of economic uncertainty.
Despite the challenges, eight out of 10 recent buyers stated that the effort was worth it, and to meet their homeownership goals sooner, many are making compromises.
Over half (55%) are considering buying a cheaper home due to rising interest rates and mortgage payments.
More than half (53%) are willing to move further from friends, family, and work, while just under half (46%) are contemplating purchasing with someone else to improve their chances of securing a mortgage.
Jon Cooper, director of mortgages at Aldermore, said: “We really must applaud first time buyers and their resilience, especially as they’ve been hit with more obstacles and uncertainty than they would have in previous years.
“It’s not easy getting on the property ladder and it’s reassuring that people are taking proactive steps to realise their goals, either by delaying their plans in order to save more or compromising to find something more affordable.”
Cooper added: “While it’s great that buyers are being so pragmatic, action needs to be taken to help make buying more achievable.
“It is positive that the Chancellor did not use their recent Budget announcement to roll back Stamp Duty relief for first-time buyers as was speculated, however the choice to increase additional stamp duty on second homes to 5% will have an impact on our housing system.
“We need to boost the supply of suitable properties to make the journey to homeownership easier, and until action to reform planning is taken then it will remain a challenging environment for young people looking to make their homebuying dreams a reality.”
