Are first-time buyers becoming more confident?

First-time buyers more confident about getting on the property ladder

A recent survey at HSBC* has shown that first-time buyers are now more confident about getting on the property ladder.

Amongst other findings, HSBC reports that:

  • One of the most likely reasons for buying a property is that it’s seen as cheaper than renting (21% of respondents). Other reasons include a desire for independence (20%), Financial Security (17%) and being able to provide for their family.
  • 68% (7 out of 10) first time buyers feel that they are now more able to buy their dream property compared to the beginning of 2023. Many of these buyers are looking to purchase a new home within the next 12 months.
  • Nearly 80% of potential buyers say they are looking for a property that needs renovation and improvements. They are targeting this type of property as it is seen as initially cheaper to buy and will reduce their initial costs.

A number of positive improvements in the UK housing market seem to have led to this increase in confidence amongst first-time buyers, including reducing mortgage rates and the fact that the housing market has started to stabilise.

Amongst some more interesting findings was that in some major cities such as Newcastle, London and Manchester, “Independence” was stated as one of the main reasons first-time buyers wanted to buy a home. In Liverpool, the main reason first-time buyers want to buy was for “Financial Security”.

As far as their deposit is concerned, the majority (68%) are using savings in their bank account to fund this. A smaller number (24%) will be using an ISA as their source of deposit.

In terms of affordability of property by region, this was broadly that those in Wales (64%) and Yorkshire (63%) had the most confidence that they could afford a deposit in the next 12 months.

People in the East Midlands (52%), The North East (53%) and Northern Ireland (53%) were most concerned about affording a deposit.

Talking to a mortgage broker was the most popular source of finding out information about the mortgages available; after this came online searches, i.e. comparison sites/money saving sites. Finally, buyers sought information from friends and family. If you’re a first-time buyer looking for a mortgage, get in touch with Goldmanread today!

*Source – HSBC Survey 2023 – UK First Time Buyers Now More Confident About Getting On The Property Ladder.

Clive Read
Clive Read

Clive Read is an appointed representative of PRIMIS Mortgage Network. PRIMIS Mortgage Network is a trading style of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority.

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