One in five aspiring homeowners fear they won’t be able to buy their first home until age 40 – a big jump from the average first-time buyer age of 33.
This is according to the Nationwide Building Society, which also found that 84% of those hoping to buy their first home admitted this cost of living crisis has further postponed their home purchase plans.
A survey of more than 1,000 wannabe homeowners found that 49% had postponed plans to purchase a home due to affordability concerns. As many as 60% had postponed their homeownership plans by up to three years.
These are buyers whose aspirations were already hampered by barriers such as saving for a down payment and house prices.
Nationwide said that when asked what the biggest barrier to getting that first home was, almost a third (31%) said it was. save for a down payment.
Meanwhile, 20% said the biggest challenge was finding somewhere in their price range and 14% said they couldn’t afford 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: “Obtaining that first home is as challenging as ever. We need to solve the riddle of the first buyer. That’s why Nationwide has continually called for the government to set up an independent review of the first-time buyer market.
“That’s why we’re launching a White Paper on Housing next week, together with the Building Societies Association, which will outline the essential policy changes needed to tackle the housing crisis and support people to find their first home.”
Survey results: What challenges do starters face?
- 26% of future homeowners have saved for their deposit for three to five years, with a further 10% savings for six or more years.
- 52% now have less money to save for a down payment each month due to cost challenges
- £9,533 is the average amount people had to put down for a deposit. £22,400 is the amount needed to put down a 10% deposit on an average priced house
- 57% plan to purchase a home with their partner or spouse, while 12% plan to purchase a home with a family member.
- 55% said they would be willing to buy in another part of the country where house prices are cheaper, or where they could buy a larger property
- 70% were willing to move up to 50 miles away just to buy their first home