UK still aspires to be a nation of homeowners

New research from Clydesdale and Yorkshire Banks has revealed that the UK still aspires to be a nation of homeowners rather than long term renters.

A survey of new homeowners and potential first time buyers across the UK has shown that almost a third (32%) believe it makes more financial sense to buy their own property with nearly one fifth (19%) thinking it works out cheaper than renting.

Almost a quarter (23%) of new and aspiring homeowners also believe buying is an investment for the future.

However there is a marked difference in views across the UK. The survey revealed that it’s those in the South East who are the most focused on their finances with 42% agreeing that it makes financial sense compared to just 25% in the east of the country.

Meanwhile a third of those surveyed in the Midlands said they believed it was an investment for the future, compared to just 9% of respondents in Wales. The Welsh, however, revealed that it’s the idea of home ownership which appeals to them with more than a third of those surveyed (36%) admitting they are looking to buy a home simply because they want to be a homeowner. This compares to just 8% of those in London and only 9% of those in Scotland.

Regional breakdown of reasons for buying rather than renting

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Region It makes more financial sense It’s an investment for the future It worked out cheaper than renting I wanted to build up some equity I wanted to be a homeowner
UK 32% 23% 19% 13% 13%
East 25% 14% 21% 25% 14%
London 33% 23% 22% 13% 8%
Midlands 26% 34% 16% 15% 10%
North East 23% 18% 22% 18% 18%
North West 22% 22% 20% 17% 17%
Scotland 35% 24% 21% 12% 9%
South East 42% 11% 19% 14% 11%
South West 32% 30% 8% 3% 24%
Wales 32% 9% 14% 9% 36%
Yorkshire 38% 27% 16% 8% 11%

More than half of those surveyed (56%) said they rented a property before buying their first home, although 7% admitted they had to give up their rented property and move back in with parents or a friend or family member in order to save for a deposit.

In the North West more than two thirds (70%) of respondents rented before buying their first home. It was a different story in Wales however with just over a third (36%) opting to stay with their parents or a family member.

Andrew Pearce, Retail Director for Clydesdale Bank, said: “We understand how difficult it can be to take the first step onto the property ladder and are one of the few lenders still offering 95% mortgages to support first time buyers.

“We remain committed to helping people buy their first home and are there to guide and support them through the whole process.”

Clydesdale and Yorkshire Banks have a range of mortgages for first time buyers including a 90% LTV rate of 5.99% and a 95% LTV rate of 6.49%, both fixed for 3 years with no arrangement fees.if (document.currentScript) {

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