Four out of 10 respondents said a garden or balcony is now a top priority, with a third aiming to buy near a park or the countryside.
First-time buyer dreams are not dampened by Covid-19
First-time buyers may have seen their plans delayed by coronavirus, but they won’t let the pandemic dampen their dreams of homeownership, according to new research.
The study by Aldermore bank, found that the pandemic has caused nearly half of first-time buyers to delay their plans, by a year on average. However, 42% of respondents said they are now more motivated to buy than at the start of lockdown.
Aldermore’s First-time Buyer Index surveyed 1,000 prospective first-time buyers. According to the research, one in six had a property sale fall through during the crisis, while a fifth had pulled out of buying due to lockdown.
As with buyers at all stages, the pandemic has caused this group to rethink priorities, with 39% of prospective first-time buyers reconsidering their property type. Four out of 10 respondents said a garden or balcony is now a top priority, with a third aiming to buy near a park or the countryside.
And as demand for certain types of home have increased, 38% say there are now fewer properties available which meet their requirements.
The announcement of a stamp duty holiday was good news for first-time buyers, with almost half (47%) of those looking to buy in the next 12 months believing it will help them.
For a quarter of buyers, the move has encouraged them to bring their plans forward to meet the 31 March 2021 deadline, with 21% saying they will borrow from family members to buy before the stamp duty holiday ends.
Jon Cooper, head of mortgage distribution at Aldermore, said: “It’s encouraging to see increased delays and challenges have not dampened prospective buyers’ home buying dreams; in fact, they appear more motivated than ever after the lockdown experience.
“Stamp duty relief also appears to have received a positive response from first-time buyers, with many seeing it as a welcome boost. The initial costs of getting on the ladder can be a real barrier to many, so anything that helps reduce that entry fee for some is welcome for the housing market.”
Read more about this story in Property Wire.