You are here: Home - Mortgages - First Time Buyer - News -

Homebuyers face three-year wait to purchase a property

0
Written by: Christina Hoghton
02/03/2016
A raft of homebuying barriers mean those wanting to get on the ladder face a long wait.

The average wait for homebuyers is 3.2 years, according to research by Gocompare.

The website said that the biggest barriers to buying or moving home are high property prices, affording a deposit and meeting other associated costs.

Over half (51%) of Brits are considering buying their first home or moving house. But, high property values in the area they want to move to, along with the associated home-buying costs, mean that most (61%) are unlikely to move in the next 12 months.

Those considering buying or moving home have been thinking of doing so for an average of 3.2 years but have been prevented by a range of barriers. These include:

  • High property prices in the area they want to buy (22%)
  • Getting enough money together for a deposit (18%)
  • The associated costs of buying a property and moving (11%)
  • A lack of availability of property in the area they wish to live (11%)
  • Job or income insecurity (10%).

Age concerns

While high property prices are a key obstacle for all would-be home movers, other difficulties varied considerably with age. For example, 45-54 year olds cite a poor credit history or credit score (14%) and job/income insecurity among their top three barriers to buying or moving home.

For those in the 55-64 and 65+ age brackets, the main obstacle they face is a lack of availability of the type of housing they wish to move to in the area they want to live in.

Matt Sanders, spokesman for Gocompare.com Mortgages said: “Affordability is a big concern for both first-time buyers and those wishing to move-up the property ladder. According to the Office for National Statistics, house prices are continuing to increase due to rising demand and a lack of supply. The average house price in the UK now stands at £288,000 and with house price inflation exceeding wage growth it’s even harder to save enough money for a deposit – potentially putting homeownership out of reach for many people.

“But there is some good news. Recently there has been a resurgence in the number of lenders offering low-deposit mortgages. Most lenders now have a mortgage product aimed at homebuyers with a deposit of 10% of the purchase price of their property and, subject to stricter eligibility criteria, some lenders offer 5% deposit mortgages.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
self-employed mortgages, financial advice
Self-employed mortgages: three myths debunked

It's not easy getting a mortgage when you're self-employed but there are also plenty of misconceptions. We get to the...

Close