More first time buyers to go it alone

First time buyers are preparing to enter the new homes market with confidence, reports SmartNewHomes.com, which has revealed high perceptions of affordability, and large numbers willing to go it alone in pursuit of their first home purchase, in spite of growing negativity in the financial markets.

In a recent survey of over 200 first time buyers, only 13% of respondents said they were put off buying a home due to the current financial climate and just 8% believed they would have to pay more than £200,000 for their first home. Results also suggest that the prospect of buying alone is not preventing buyers from looking to make their first home purchase. The survey recorded that 46% of looking for a home were single, compared to 33% looking to buy with a partner.

The majority of respondents cited high prices as the main barrier to them getting on the property ladder (66%), with 75% not expecting to own a home until they were over 30.

David Bexon, Managing Director of SmartNewHomes.com said: “First time buyers are still looking to buy at the right price, and have not been completely deterred by current conditions in the market.

“While some first time buyers’ perceptions of affordability may be unrealistic, competitive prices are still achievable and the recent cooling of prices has increased accessibility. A range of excellent developer incentives and schemes are also currently available, which in some cases have allowed buyers to bypass financial constraints and secure a more competitive mortgage.

“However, what we need to see now is lenders relaxing their lending criteria across the board to assist buyers back into the market.”

The majority of respondents said they would opt for new build property (91%), based on the strength of the offers available (57%), as well the added security of build quality and purchase guarantee.

Bexon adds: “These days there seems to be less pressure on first-time buyers to get on the housing ladder at all costs, although they have by no means given up on the market. If anything, they are just cannier about the many options available to them, increasingly well-informed on price fluctuations, and willing to hold out for the best deals to come along.”