Nearly two out of three first-time buyers are now couples, highlighting the growing cost of buying a house and the need to have two incomes.
New research from Nottingham Building Society found that 63% of first-time buyers over the past five years bought as part of a couple rather than as individuals, with just 18% saying they would have been able to do so on their own.
The biggest challenge first-time buyers face is raising a deposit (47%), followed by finding a house they could afford (33%) and applying for a mortgage (20%).
These figures are backed up by mortgage brokers, with one in three saying the number of joint applications has increased over the past two years.
Rising house prices means it increasingly difficult for first-time buyers to get the money together for a deposit.
The latest Land Registry data shows the average house price in England and Wales is currently £189,901, with prices ranging from £97,581 in the North East to £534,785 in London.
Ian Gibbons, senior mortgage broking manager at Nottingham Mortgage Services (part of The Nottingham), said: “Rising house prices increase the pressure on first-time buyers and makes saving for a deposit more challenging.
“Clearly two salaries are better than one and that is driving the rise in the number of first-time buyers who can only afford to buy as part of a pair. It is striking that just one in five who bought as couples believe they could have managed it on their own.
“However there is a lot of help for first-time buyers from the Government and mortgage lenders with special deals and even Help to Buy ISAs. You don’t have to be part of a couple but the key to buying your first home is to search the whole market and get specialist advice on the wide range of options available.”
Tougher affordability checks from lenders and rising house prices have made it increasingly difficult for first-time buyers with smaller deposits to get on the property ladder.
Low interest rates combined with the economic recovery have done little to reduce the need for rented housing, while house price inflation ahead of wage growth has pushed property prices out of reach for many.
A recent study by the Resolution Foundation found that the housing ladder is rapidly disappearing for most young working households on modest incomes. According to the research, over-45s now account for three-quarters of all home owners and that only one in 10 young people are likely to be on the property ladder in 2025.
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