One in three first-time buyers (34%) believe their first property will be a semi-detached – with a quarter predicting they will end up in a flat, while 21% reckon it will be a terraced home.
Two-thirds of house hunters (67%) estimate their first home will be quite small – but they are willing to compromise on the number of bedrooms and bathrooms, just to get on the property ladder.
Other areas in which they are prepared to be flexible include the location (37%), and the size of the garden (42%) – while others would be sacrifice the garden altogether.
In fact, the survey of 1,000 aspiring homeowners, who are hoping to buy in the next three years, found that 70% would make a compromise, to turn their dream into a reality.
Meanwhile, almost half (47%) would consider overbidding, just to take that first step onto the property ladder.
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The findings emerged from internal data from the Skipton Group, which includes Skipton Building Society and Hamptons Estate Agents – and which also revealed that first-time buyers made up over a quarter of the housing market in 2023.
And their share of the housing market has increased every year for almost a decade – with 16% of properties in 2015 being sold to them.
Now at 28%, this has still grown by 5% since 2020 – despite a period consisting of a pandemic, economic downturn, and tough market conditions.
The size of the garden is the area in which house hunters are most willing to be flexible (SWNS)Aneisha Beveridge, head of research at Hamptons, said: “First-time buyers who have been able to successfully navigate 2023’s higher interest rates, have increasingly found themselves at the front of the home-hunting queue.
“With nothing to sell in what’s been a tough market, those buying their first home are being favoured over offers from anyone with somewhere to sell – often even when their offer is a little lower.
“This means they’re getting more home for their money than they were last year, particularly if they’ve got a healthy deposit.
“New buyers have been driven into the market by rapidly rising rents, which are making the increases in mortgage rates look more palatable. However, with mortgage rates forecast to continue falling, movers will probably return in more meaningful numbers in 2024.”
Figures from Skipton Building Society and Hamptons also revealed that more first-time buyers are from London and the south of the country this year, compared to last year. On the other hand, there have been fewer in the north of England and around Yorkshire in the last 12 months.
And there are 28 local authorities where those buying their first property actually outnumbered other movers – with the majority being in the south.
Areas in and around London – such as Brent, Greenwich, North Northamptonshire, Dartford, and Bexley – saw swathes of new buyers, compared to more experienced movers.
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Those in London were also far more likely to receive financial support towards their deposit from their parents or guardians, than other regions – 46%, compared to the national average of 35%.
However, Londoners were also the only group who assumed they would be more likely buy a flat over semi-detached (38%, versus 26%), according to the research, carried out via OnePoll.
Meanwhile, more northern cities, like Leicester and Leeds, also had a majority of buyers getting on to the property ladder for the first time.
But there seems to be an increased buying power among these younger house-hunters – as the average household income has increased by 14%.
Charlotte Harrison, CEO of home financing at Skipton Building Society, said: “Due to the significant changes in the market this year, and escalating rents, we’ve seen many first-time buyers become more realistic than optimistic with what they can afford, and adjust their property expectations.
“Many buyers have realised it’s better to step onto the property ladder with a smaller starting point of a property, than hanging onto the idea of waiting to own something much bigger, especially if they’re paying escalating rents.
“That being said, people trapped in renting remains one of the UK’s biggest housing challenges, with increasing rents and the cost-of-living squeeze further impacting people’s ability to save for a house deposit – making it almost impossible for people get onto the property ladder.
“But, there are a wide range of options to help first-time buyers, even for those feeling trapped in the rental cycle. We’d encourage all those who aspire to buy their own home in 2024, to look at the wide range of options available to help them, as the first step onto the property ladder may be closer than they think.”
TOP 10 THINGS FIRST-TIME BUYERS ARE WILLING TO COMPROMISE ON, TO GET ON THE HOUSING LADDER:
- The size of the garden
- Being further away from where they initially wanted to be
- The number of bedrooms
- The number of bathrooms/toilets
- Parking at the property
- Whether or not the property is detached
- Whether the property has a garden at all
- Not being close to local amenities
- Having a dining room
- Whether to buy a flat, instead of a house
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