EXCLUSIVE: Deposits less of an obstacle for first-time buyers

Just 28% of first-time buyers cited the deposit as their biggest obstacle, down from 40% in 2018.

Rozi Jones
31st October 2019
pig family save first time buyer FTB money
"It is disheartening to see that so many have the perception that getting onto the housing ladder is still very difficult."

First-time buyers still believe that getting onto the property ladder is difficult, however deposits are becoming less of an obstacle, according to research from Aldermore.

Year-on-year, perceptions amongst first-time buyers remain gloomy, with over one in four (29%) saying that getting on the property ladder it is very difficult and many more believing it is a pipedream (64%).

However house price stagnation seems to have made deposits more achievable for the average first-time buyer. Last year 40% of all prospective buyers considered it their biggest obstacle, compared to just 28% in 2019.

House prices across the country have grown by just 1.2% in the past year, with London house prices falling at the fastest rate in 10 years.

According to the latest data from UK Finance, the number of mortgages for first-time buyers rose by 0.5% on last year at 30,720.

Aldermore says schemes such as Help to Buy, shared ownership, the H2B ISA and stamp duty cuts, are also further helping first-time buyers achieve their goals.

Damian Thompson, director of mortgages at Aldermore, said: “There’s no denying that the housing market has tipped in favour of first-time buyers and it is disheartening to see that so many have the perception that getting onto the housing ladder is still very difficult. Buying a home for the first time can be stressful but there is plenty of support for first-time buyers.

"Finding the right route can make the difference when it comes to achieving your property aspirations. This is why have produced a guide to help first time buyers navigate the products and schemes available, with the aim of demystifying the process a bit."

Related articles
More from Mortgages
to our newsletter

Join a community of over 30,000 intermediaries and keep up-to-date with industry news and upcoming events via our newsletter.