FTB Research: Most First-timers Need Discounts To Consider Buying
New first-time buyers (FTB) market research reveals several curious trends in the sector, including price trends and buying schemes.
Mortgage rates remain at record-high levels, so many prospective new buyers are split between buying new homes now or waiting until the economy recovers. As such, mortgage specialists at Uswitch surveyed 2,000 tenants and revealed several trends in the sector.
FTB Market Research
Interestingly, almost half (43%) of FTBs are not considering any buying schemes to step on the property ladder. In turn, 30% are planning to take advantage of either the First Homes Schemes or the Help to Buy ISA to secure their new homes deals. Another popular option is the Mortgage Guarantee Scheme which has been extended until December 2023.
In turn, Shared Ownership is only gathering momentum, as just 10% of FTBs are planning to use the scheme to purchase a new home. However, this option is gaining popularity as more people try to find new ways of buying a new property.
Unsurprisingly, half of the FTBs earning less than £25,000 plan to use any available schemes to secure a home deal, proving the significance of government-backed initiatives for buyers.
Prospective Buyers Markets Stay Resilient
With all the market volatility and rising living costs, it is no surprise that only 41% of the surveyed FTBs plan to buy a new home within the next five years. However, a similar figure for younger fist-timers (25–34 years old) is 61%, which is a significant spike.
Overall, 42% of FTBs are sure that the market recession will affect their buying ability and postpone their homeownership journey.
Current property prices remain flat or marginally falling, as well as average mortgage rates. As a result, the prospects of buying now or waiting until the economy recovers are both valid options for first-timers.
