This is according to Nationwide Building Society which also found 84% of those hoping to buy their first property admitted the cost-of-living crisis has pushed back their home buying plans further.
Its poll of over 1,000 wannabe homeowners found 49% had delayed plans to purchase a property due to affordability concerns. As many as 60% had postponed their homeownership plans by up to three years.
These are buyers who already felt hindered in their aspirations by barriers such as saving for a deposit and house prices.
Nationwide said, when asked about what the biggest barrier was to getting that first home, nearly a third (31%) said it was saving for a deposit.
Meanwhile, 20% said the main challenge was finding somewhere in their price range and 14% said they could not afford the monthly repayments and 10% said the ability to borrow enough for the mortgage was a barrier.
Rachael Sinclair, Nationwide’s director of mortgages and financial wellbeing, said: “Getting that first home is as challenging as it ever has been. We need to solve the first-time buyer conundrum, which is why Nationwide has continually called for government to set up an independent review of the first-time buyer market.
“It’s why we’ll also be jointly launching a Housing White Paper with the Building Societies Association next week, which will outline the essential policy changes that are needed to tackle the homeownership crisis and support people into their first home.”
Poll results: What challenges are first-time buyers facing?
- 26% of prospective homeowners have been saving for their deposit for three to five years, with a further 10% saving for six or more years.
- 52% now have less money each month to save for a deposit as a result of cost challenges
- £9,533 is the average amount people had to put towards a deposit. £22,400 is the amount needed to put down 10% deposit on a average-priced home
- 57% plan to buy a home with their partner or spouse whilst 12% will look to buy with a family member.
- 55% said they’d be willing to buy in another part of the country where house prices are cheaper, or where they could buy a bigger property
- 70% were prepared to move up to 50 miles away just to buy their first home
