The surge of interest in property means almost two thirds of young adults (65 per cent) plan to buy their first home or move house during the lifetime of Help to Buy, according to independent mortgage broker Mortgage Advice Bureau, the UK’s leading independent mortgage broker.
More than one in three adults below 30 have ambitions to buy their first home before the end of 2016 (38 per cent vs. 14 per cent of all adults), while more than a quarter plan to move house (27 per cent vs. 21 per cent of all adults).
Young adults show the biggest change in attitude towards property purchases as a result of Help to Buy, in line with the government’s aim to support first time buyers.
Almost one in three 18-29s are more likely to buy a new build home now that government support is available (30 per cent), compared with 13 per cent of all adults. The Help to Buy equity loan has already impacted activity in the new build market with over 12,500 reservations in its first five months.
Unlike part one of the Help to Buy scheme, the new mortgage guarantee – offering loans of up to 95 per cent – is available on all property rather than just new build homes. One in five young adults already say they are more likely to buy a ‘second-hand’ home as a result of Help to Buy (20 per cent), compared with 12 per cent of all adults.
Ahead of the launch of the mortgage guarantee – brought forward by three months to October 2013 – public awareness of Help to Buy trailed behind shared ownership schemes and Right to Buy.
Homeownership remains an important goal for nearly four in five UK adults (79 per cent) with over half feeling it is very important (55 per cent). And there is little sign of the younger generation abandoning this goal: below the age of 60, it is 18-24s who feel the strongest that homeownership is an important goal (83 per cent) with 57 per cent feeling it is very important.
Just 1 per cent of 18-24s feel homeownership is not important at all and just 5 per cent of all adults.
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