The outlook for first time house buyers in the UK is slowly becoming more positive. Just over a third of first time buyers (35 per cent) believe that it is extremely difficult to get on the property ladder – down 4 percent from 39 per cent in 2016, according to the latest (Q3 2017) quarterly First Time Buyer Index published by Aldermore, the specialist bank.
While a substantial proportion of first time buyers do believe it is still very difficult to get on the housing ladder, this belief has started to shift. In addition, as the market begins to flatten, rising property prices are no longer seen as such a barrier, with a 10 per cent decrease in those who consider it the biggest obstacle to buying their first home. Almost one in ten (37 per cent) found this to be the biggest barrier in 2016 in comparison to just over a quarter (27 per cent) in 2017.
Raising a deposit and property prices continue to be the biggest concern for first time buyers across the UK. However, this perception differs across the country.
The Index also revealed that mortgage affordability and difficulties securing a mortgage has increasingly becoming viewed as more of an issue. Over one in ten (12 per cent) first-time buyers believe mortgage affordability is an obstacle to getting on the ladder, in comparison to just one in twenty (5 per cent) in 2016, Aldermore said.
Charles McDowell, Aldermore’s Commercial Director, Mortgages, says: “Over the past year we have tracked the outlook for first time buyers as well as the obstacles they are facing to get on the property ladder. While the situation is by no means easy, there does seem to be light at the end of the tunnel for those trying to buy their first home.