A fifth of first-time buyers (FTBs) are ready to purchase a property with no electricity, running water or central heating just to get on the property ladder, according to the latest research from Your Move and Reeds Rains.
Homeownership remains the highest priority for the most Brits with 91 per cent of tenants aspiring to own.
First-time buyers are increasingly willing to compromise on the condition of the property at the time of purchase. Almost half (45 per cent) said they are prepared to settle for a home in any condition so long as it was within their budget.
The willingness to compromise is directly proportional to how essential the household features are. While 20 per cent of first-time buyers would consider a property without electricity and 19 per cent are ready to accept a deal on a house without working plumbing and central heating, a staggering 77 per cent would pay no attention to a dated décor and a similar proportion (76 per cent) would accept the lack of a sub-par kitchen as a set-back. An out-of-date bathroom would be no problem for 71 per cent of prospective buyers.
The survey showed that a considerable proportion of people would be willing to buy a new home in serious need of repair. A total 12 per cent of first-time buyers would purchase a house with dry rot and 14 per cent would buy a property with a leaking roof. This compares to only 9 per cent of respondents who said they would not be prepared to put up with make any significant set-backs when buying their first home.
Adrian Gill, director of estate agents Your Move and Reeds Rains, comments:
“As demand in the property market remains strong, first-time buyers are willing to accept a home in less-than-perfect condition.
“While the stats seem alarming at first glance, they’re a good sign for the housing market overall. The figures show that most would-be first-time buyers haven’t given up on the dream of property-ownership. Instead, they are sensibly adjusting their expectations and preparing themselves for some of the short-comings that may be present in a first home. Indeed, it may even be the case that some first-time buyers actively select properties with faded décor or faulty kitchens, judging that the reduction they can secure on the asking price is greater than the cost of any required renovation work.
“First-time buyers are also still taking advantage of Government-backed schemes, such as Help to Buy, while they last. Home-buying incentives are not going to be around forever – especially now the property market is beginning to stand on its own two feet. First-time buyers are more inclined to purchase a home now with support – even if it doesn’t match exactly to their specifications – than hold out for a more ideal property and risk the incentives expiring.”
| Monthly Transactions | Average Purchase Price | Average Deposit | Average Mortgage | |
| June 2015 | 21,100 | £154,041 | £25,926 | £128,115 |
| May 2015 | 22,700 | £154,910 | £25,386 | £129,524 |
| 1 month change | -7.0% | -0.6% | +2.1% | -1.1% |
| 3 month change | -8.3% | -0.9% | +2.8% | +0.5% |
| 1 year change | -27.2% | +0.0% | -1.0% | +0.2% |
