The number of prospective first-time buyers planning to get on the housing ladder has remained the same despite uncertainty following the EU referendum, new research from Aldermore shows.
Its first-time buyer index, conducted both before and after the EU referendum, found similar levels of confidence from first-time buyers looking to purchase their first property in the next 12 months.
The research suggests around a million people who have never previously owned a property are planning on purchasing their first home in the coming year.
Aldermore found that raising a deposit has overtaken property prices as the main obstacle first-time buyers face (39%) compared to the previous survey, up from 36%.
Only 5% of respondents listed mortgage affordability as their main barrier, with fewer that one in ten (7%) of first-time buyers citing difficulties securing a mortgage.
Less than one in five (16%) are planning on funding the deposit from their savings without any additional help, down from 18% prior to the EU referendum.
When it comes to applying for a mortgage, nearly twice as many prospective first-time buyers are planning to apply jointly with their partner (48%), compared to just over one quarter (25%) of people doing it on their own.
Being close to family when choosing a first property was only listed as important to a quarter of respondents (24%), with almost double choosing a garden (47%), almost two fifths choosing a drive or off road parking (38%) and a third listing double glazing (33%).
Charles Haresnape, group managing director mortgages at Aldermore, said: “Our research, conducted both immediately before the EU referendum and after the initial period of uncertainty following the Brexit vote, shows that first-time buyers’ mind-set remains almost entirely unchanged on their plans to purchase their first property.
“A huge focus on securing a mortgage masks the issues that many have reported in raising the initial deposit, with a large proportion unable to do so without family help at a time of rising rental costs across the country, with three quarters of respondents considering the Help to Buy (HTB) scheme. While the HTB mortgage guarantee scheme is ending in December, Aldermore will continue to support the large demand from borrowers looking for higher LTVs through the equivalent Mortgage Indemnity Scheme.
“While certain lenders offer options such as our Family Guarantee Mortgage, sluggish wage growth and the difficulty of funding a deposit are likely to be responsible for many of the two thirds who don’t manage to buy a property within a year.”
