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Finding property biggest bar to newbuild home ownership

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Locating an appropriate property has become more difficult than saving a deposit for those seeking new-build homes.

According to the latest annual survey commissioned by Barratt Homes, finding the right property has overtaken both accumulating the required deposit and being accepted for a mortgage as the greatest barrier to homeownership for those seeking new-build homes for the first time since the survey began in 2010.

In 2011, 39% of respondents cited saving a deposit as the biggest challenge, followed by finding a mortgage (30%). Finding the right property came in third at 17%. By contrast, in 2012, 30% cited finding the right property as the greatest obstacle to becoming a homeowner, followed by saving a deposit (26%) and finding a mortgage (15%).

Commenting on the findings, a Barratt Developments spokesperson said:

“There has clearly been a shift in the market with a growing belief that the availability of mortgage finance has become a little easier – that’s got to be good news for homebuyers.

“However, customers are overestimating the size of the deposit that they would need, sometimes by as much as three times – the equivalent of £25,000, rather than £8,000 on a £160,000 new-build home – particularly as 95% Government-backed mortgages become established in the market.”

In the broader market, as opposed to the new-build sector, saving deposit continues to be the greatest barrier to homeownership for 59% of aspiring homeowners.

Among newbuild property seekers, buying a property continues to rank much more highly than getting married or having children in terms of ‘getting on with life’ with 83% of those surveyed rating it as 8/10 or above. This can be compared to 61% and 55% rating marriage and having children, respectively, at 8/10.

When it comes to desirable features of properties, off-road parking was cited as the most important factor, followed by an en-suite bathroom, and a low maintenance garden was more important for the over 55s.

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