Despite strong appetite for homeownership, many aspiring buyers are struggling to take the first step onto the property ladder - with affordability, low confidence, and lack of knowledge of available support schemes standing in their way.
New research from Shawbrook finds that more than three-quarters (77%) of potential buyers are aiming to purchase a home in the next five years. However, many feel ill-equipped to do so, with a number of issues keeping them from crossing the threshold into becoming a homeowner.
The research finds that almost a third (31%) of people believe the Government should offer more support for buyers. However, existing schemes such as the Lifetime ISA, Help to Buy, and Right to Buy are often underutilised - with one in five (20%) would-be buyers unaware of any support available to them.
Access to advice also appears to be a key gap. Just 10% aspiring buyers say they have sought help to improve their finances, while 12% say the lack of access to mortgage advice is one of the biggest barriers to homeownership.
Affordability is another key barrier to home ownership, with 43% of people citing general affordability as their main barrier and 41% saying high house prices are preventing them from buying.
However, the research also shows that confidence is a key issue. Only one in five (20%) of people are completely confident in getting approved for a mortgage - dropping to just 10% of people with adverse credit histories.
Steve Griffiths, commercial director for retail mortgages at Shawbrook, said: “Our research makes clear the growing mismatch between people’s desire to buy and their readiness to do so. While many are aspiring to buy in the near future, a combination of issues with affordability, awareness of available support and a lack of confidence is stopping them from taking that crucial first step.
“The property market remains tough, particularly for those without access to family help or significant savings. However, it’s heartening that so many people plan to buy in the coming years - and the right advice and specialist mortgage solutions can make all the difference to this happening. Lenders and brokers must work together to make guidance more accessible, and to provide products that reflect the financial realities of first-time buyers today.”
