Homebuyers in the UK worried about house prices and mortgages
By z4027672030, May 20 2016 09:18AM
New research has found that today’s generation of prospective homebuyers in the UK are concerned about financial worries, with home prices and getting a mortgage their biggest fears.
The survey conducted by the Home Builders Federation (HBF) also shows the change in attitudes to home buying between young and older people.
Whilst 84% of 18 to 34 year olds still wish to own their own home, there are financial obstacles in the way of them achieving their dreams. 73% of those questioned mentioned the difficulty of saving for a deposit, 69% said property prices was stopping them and for 53% it was the difficulty of getting a mortgage.
The survey also found that one in four 18 to 34 year olds were unaware of any government support to help them get on the property ladder, such as the Help to Buy ISA aimed at helping young people to save for a deposit or the 5% deposit Help to Buy loan scheme.
Young people today are also more concerned about the running costs of homes than their elders, with 67% of 18 to 24 year olds taking this into account when weighing up whether to buy, compared to just 40% of 35 to 44 year olds.
Younger people are more likely to buy a new build – which are up to 50% cheaper to run than second hand homes – with 55% saying they would consider buying one, compared to just 23% of over 45s.
The survey also found the amount of money second hand homebuyers spend on their properties, with 13% of people spending over £40,000 upgrading their home. The HBF estimated that it costs around £45,000 to upgrade a second hand home to the standard of a new build.
The HBF also believe that there are a number of misconceptions surrounding new build houses. 34% of people surveyed said that they have never visited a new build or a show home, and a further 18% saying they hadn’t in the last 10 years.
This shows that the industry faces a big challenge in engaging with the public to outline the benefits of the modern, high quality new build homes.
55% of 18 to 24 year olds said they would consider buying a new build, with only 28% saying it was not likely. Overall, 33% of people surveyed across the board said they would consider buying a new build home, with 46% saying it was unlikely.
The HBF believe that more people should be open to the idea of new build homes, and the number of government schemes mean that buying a new home is a real possibility for many people.
Speaking of the properties, the HBF executive chairman Stewart Baseley said:
“New build homes have so many great benefits, from the high build quality and brand new fixtures and fittings, to the low running costs and added bonus of a 10-year warranty.
“But the real benefit for many first time buyers is the affordability of the whole process.
“Once in a new build, everyday living in terms of running costs, bills and not needing to spend thousands on upgrades mean people can enjoy living in their new home.
“We are urging people not to be put off by dated misconceptions, but to go and visit a new build home and see what is actually available.”
Whether you are a first time buyer or you are moving house, our North Devon property lawyers can help you with all of your conveyancing needs, guiding you through the process from start to finish. Please contact us today for more information.