Falling house prices and the re-introduction of 100% mortgages have given first-time buyers reasons to be hopeful.

According to a survey of 1,000 first-time buyers by Moneybox, 40% were optimistic about becoming homeowners in line with the previous survey at the start of the year when 42% said they felt positive.

Rising interest rates, said 21% of respondents, had boosted their deposit funds while falling house prices and the arrival of 100% mortgages, re-introduced by Skipton Building Society in May, had buoyed the spirits of around 20% of buyers.

Nationwide’s latest house price index revealed a 3.4% decline in annual house prices putting the average property value at almost £261,000 in May. The average first-time buyer asking price, which has remained static month-on-month, is £226,421 according to Rightmove.

Meanwhile 20 per cent of first-time buyers are feeling positive about their path towards ownership as they believe the cost-of-living crisis is slowing down.

Among those actively saving towards the deposit for their first home, they are setting aside £344 a month on average. Some 24% per cent hope to buy within 12 months, down from 35% six months ago.

Not all good news

But not all first-time buyers surveyed were feeling cheerful. Just over 40% of respondents felt their homebuying plans had gone backward in the last six months. This is significantly less than the 68% who felt this way six months ago, however.

Nearly six in 10 of first-time buyers said the cost-of-living crisis was impacting their disposable income making it more difficult to save a deposit.

Meanwhile, 30% of first-time buyers have had to reduce the amount they are saving towards their first home deposit in the last six months.

FTBs ‘remarkably resilient’

Cecilia Mourain, managing director of Moneybox Homebuying, said: “The property market is ever-changing but we know the volatility of the last six months to a year has been unsettling for many.

“Yet despite this, the desire to own a home has increased significantly, and pragmatic first-time buyers remain remarkably resilient, adapting to the changing market conditions and remaining optimistic as they work towards their goal.

“Seeking advice from home-buying experts will help you dial down the noise, and thoroughly prepare for your home-buying journey, with greater confidence.”