Despite the housing slump of the last three years, the long term home-owning aspirations of first time buyers are higher than at any time since the 1970s.
New research carried out for the AA Home Emergency Response service reveals that of those who have bought their first home in the period since the 2008 housing peak, 37 per cent say they feel they can realistically aspire to owning a detached home. The equivalent figure for those buying in the 1970s is 39 per cent, falling to 33 per cent for first time buyers in the 80s, and 32 per cent for those entering the housing market in the 1990s.
Aspirations for the size of home have increased – while the percentage expecting to progress to a detached home with two to three bedrooms fell slightly from 13 per cent in the 1980s to 12 per cent for those buying since 2008, the proportion of first time buyers with expectations of a four or five bedroom house have risen from 19 per cent to 22 per cent over the same period.
The political debate about mansion taxes has not dissuaded people from thinking ownership of a very large home will be feasible for them – three per cent of those buying their first home since 2008 expect to eventually own a home with six or more bedrooms, three times the proportion of those getting their first mortgage in the 1980s.
Both men and women are equally bullish in their belief that a detached home will be within their reach, but it’s the younger generation who are most likely to feel this will be at the larger end of the market. Seven per cent of 18-24 year olds believe they will end up owning a detached home with six or more bedrooms.
The 1980s is remembered as the decade in which Margaret Thatcher’s Government heavily promoted the benefits of home ownership. However, for a quarter (24 per cent) of those buying in that decade, a terraced home was the limit of their home owning ambitions. Only 15 per cent of those buying for the first time since 2008 believe their ultimate home will be a terraced one.
While people’s aspirations have stretched beyond the terraces, over the same period the expectations for apartment living have almost doubled. In the 1980s 6 per cent of first time buyers believed that a flat would be the pinnacle of their home ownership, a figure which has risen to 11 per cent for those buying in the post 2008 housing market slump.
Although 37 per cent of first time buyers may feel they will achieve ownership of a detached home, detached properties only make up 17 per cent of the housing stock.
Tom Stringer, head of AA Home Emergency Response, said: “On the motoring side we are aware that new drivers love their first car but often aspire to drive a bigger, better, more expensive model.
The same appears to be the case in the housing market.
“This research has revealed that the troubles in the housing market over the last three years have not dented the aspirations of recent first time buyers. In fact, new entrants to the market are more positive about their long term prospects than those entering in the last thirty years – something which could bode well for recovery in the market. Just as car owners are likely to have breakdown cover for emergencies, we believe it is important for home owners to be adequately covered in the event of emergencies.”
