SEVEN in 10 first-time buyers are willing to compromise to get on the property ladder – including the size of the garden, location and number of bedrooms.
A poll of 1,000 adults who plan to buy their first home within the next three years found 42% are happy to have a smaller garden if it means they can buy a property.
While 37% are happy to be further away from where they initially wanted to be.
In fact, 67% expect their first home will likely be on the smaller side.
But 47% will consider overbidding to make their property dream a reality.
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According to internal data from the Skipton Group, which includes Skipton Building Society and Hamptons Estate Agents, first-time buyers made up more than 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.
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.”
The research, carried out via OnePoll, found 34% thought they’d first own a semi-detached property, ahead of a flat (25%) and terraced (21%).
It was only those buying in London who assumed they’d more likely buy a flat over semi-detached (38% to 26%).
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Figures from Skipton Building Society and Hamptons revealed more first-time buyers are from London and the south of the country this year compared to last.
But there have been fewer in the north of England and around Yorkshire in the last 12 months.
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 like Brent, Greenwich, North Northamptonshire, Dartford and Bexley saw swathes of new buyers, compared to more experienced movers.
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%.
While 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 of these younger house hunters – as the average household income has increased by 14%.
Charlotte Harrison, chief executive officer 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.
“With many buyers realising 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 things buyers are willing to compromise on to get on the housing ladder:
1. Size of the garden
2. Being further from where they initially wanted to be
3. Number of bedrooms
4. Number of bathrooms/toilets
5. Parking at the property
6. Whether the home is detached or not
7. Having a garden at all
8. Not being close to local amenities
9. Having a dining room
10. Whether to buy a flat instead of a house
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