The latest analysis from e.surv, which examines the considerations and strategies used by UK first-time buyers, has found that affordability issues are seeing many opt for smaller homes.
Uncertainty surrounding mortgage rates and house prices remain the primary obstacles for aspiring homeowners, with 31% and 29% of surveyors respectively citing these concerns as significant barriers.
In response to these affordability constraints, first-time buyers are gravitating towards smaller, more manageable properties. Two-bedroom resale terraces emerged as the most sought-after option, reflecting the desire to balance affordability with living space. This trend is particularly evident in London, where 22% of respondents indicated that parental assistance from the Bank of Mum and Dad was crucial in securing a home.
To further enhance their purchasing power, buyers are exploring a range of financing options. Notably, 18% are considering affordable home ownership schemes, 16% are willing to extend mortgage terms, and 16% are open to exploring less expensive neighbourhoods. These findings highlight the proactive measures first-time buyers are taking to overcome affordability challenges and realise their dream of homeownership.
Rob Owens, Head of Research at e.surv said: “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.
“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.”
