Hundreds of thousands of potential first-time buyers are putting off making house purchases until after Brexit despite the fact they are ready to buy now, according to new research.
The uncertain political climate is being blamed by more than half of aspiring homeowners with a deposit for the reason they are holding off buying at the moment.
They think they will get more for their money after 29 March, which is the date the UK is set to leave the European Union (EU).
Research by financial services provider OneFamily revealed many would-be homeowners needed house prices to drop by as much as 10% to be able to go ahead and make a purchase, although some could progress if they fell by 5%.
The survey results suggested 136,000 people across the UK were holding off from entering the housing market. Meanwhile, two out of three first-time buyers who are ready to buy thought that making the purchase before Brexit would be a bad financial decision.
It is, said OneFamily, one of the influences on the slowdown of the property market, which is at its weakest in six years.
There are some who are not deterred by the lack of Brexit certainty, however. One in five first-time buyers said they would buy a property before the UK leaves the EU because they had found their ideal home and didn’t mind losing money. Others were going ahead because they had already waited too long. Around 15% thought Brexit would not affect property prices.
Nici Audhlam-Gardiner, managing director of Lifetime ISAs at OneFamily, said waiting a little longer could provide first-time buyers with more time to increase their savings towards their first home.
Lifetime ISA
She suggested looking at the Lifetime ISA as a replacement for the Help to Buy ISA, which closes this year, because it provides savers with a 25% bonus on their savings on up to £4,000.
However, she added: “While any market fluctuation as a result of Brexit could give first-time buyers a golden opportunity to get on the housing ladder, it could just as easily make it harder.”
