The Government's Help to Buy scheme is fuelling the homeownership ambitions of young adults, with almost two thirds (65%) of 18-29 year olds planning to buy their first home or move house during the three-year lifetime of the scheme.
According to figures from the Mortgage Advice Bureau (MAB), 38% of adults below the age of 30 plan to buy their first home by the end of 2016 while more than a quarter (27%) plan to move.
The research also indicates a change in attitude towards property as a result of the scheme. Thirty percent of 18-29s are more likely to buy a new build now that Government support is available (compared to 13% of all adults) while 20% are more likely to buy an existing home as a result of the second phase of H2B.
Public awareness of Help to Buy is strongest among those under 40 too, perhaps unsurprising given that they're more likely to use the scheme, and encouragingly homeownership ambitions are strongest amongst the younger age group with it being an important goal for 83% of 18-24 year olds.
Just 1% of 18-24s feel that homeownerships isn't important, despite the fact that affordability remains a key issue for those further down the property ladder – something that H2B has been specifically designed to address.
Brian Murphy, head of lending at MAB, commented:
"It's clear that consumers are crying out for better access to mortgages and the second part of Help to Buy – the mortgage guarantee – brings existing properties into play alongside newly built homes. It means the appeal of Government support will extend to a wider audience which can only help towards fulfilling home-owning ambitions.
"The Help to Buy guarantee will ultimately improve the availability of genuine, affordable 95% mortgages: products which are an essential part of a healthy, sustainable market.
"It will also mean homeowners with limited equity have better prospects of moving up the property ladder, which in turn frees up more homes for first-time buyers."
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