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Prospective first-time buyer numbers rising

Prospective first-time buyer numbers rising

Category: Mortgages

Updated: 11/07/2012
First Published: 02/07/2012

MONEYFACTS ARCHIVE
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Latest figures from the property website Rightmove have revealed that the number of people intending to purchase their first home over the next 12 months is at its highest level for nearly three years, at 27.9%.

July's First Time Buyer Report, which aims to provide an insight into the thoughts and intentions of prospective buyers, found that 33% of young people still feel that the biggest problem they face is raising funds for a deposit, although this is down from last year's figure of 42% and thought to be due to the accumulation of savings.

Interestingly, many people see the suitability of a property as the primary worry when taking the first steps onto the property ladder, with over 30% of those surveyed viewing it as the biggest challenge as opposed to worries over a deposit.

The report also found that many people intend to purchase their first home with a partner. Around two thirds, or 67% of would-be buyers believe the property ladder is more accessible when purchasing as a pair due to combined income and funding.

The average age at which people see themselves venturing onto the property ladder has fallen marginally from 32 in 2011, to 31. Whilst this is not much of a fall, Rightmove believes that young people are planning ahead and making provisions to enable them to buy their own home as opposed to renting or staying on at home with mum and dad.

Regionally, Greater London has the largest percentage of young people intending to buy their first home over the forthcoming year, at 42.8%; nearly double when compared to other areas of the UK . The South West currently has the lowest number of prospective first-time buyers, at 21.4%.

Miles Shipside, director of Rightmove, commented: "The results come as a welcome surprise, hopefully this three year high in intending first-time buyers will come to fruition. It seems that some five years into the property market downturn, more are getting their heads and wallets around the new rules of first-time home-ownership, though they still face some testing challenges."

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