A new report from Yorkshire Building Society examines the first-time buyer market and compares responses from people attempting to get on the housing ladder with those who bought their first home in the last few years.
It reveals that today’s first-time buyers are more financially focused than those who bought before the credit crunch, but the economic turmoil has not dampened their desire to ‘nest’ rather than ‘invest’.
While 85% of those who bought in the last year said setting up home with their partner was their primary goal, at a time of national financial instability people are also looking at their homes as an opportunity to improve their finances.
The research of over 2,000 potential/existing first time buyers found that despite market conditions, 45% of first time buyers who bought in last year still believe property is good investment, whereas 50% of potential first time buyers agree with this sentiment.
Three out of four people who had yet to purchase their first property aspired to own their own home, suggesting that despite the economic environment more people than ever are looking towards bricks and mortar to provide them with certainty.
Chris Smith, Group Direct Mortgage Manager at Yorkshire Building Society, said: “As a mutual organisation, mortgage lending is part of our core business. As such Yorkshire Building Society commissioned this report because we’re committed to understanding the needs of first time buyers to ensure we continue to provide innovative products that help more people to realise their home-owning ambitions.
“In the last five years mortgage activity in general has more than halved, and today’s first time buyers are facing a squeeze on incomes and pay rates that are not keeping pace with inflation. However, it’s encouraging to see the proportion of first time buyers has actually begun to increase in this period and more people are seeing home purchase as a prudent financial decision.
“First time buyers are vital to the housing market, and here at the Yorkshire we are doing our best to help. In the first six months of 2012, we increased our overall net mortgage lending compared to the same period last year, with approvals to first-time buyers up 32%.”
View the full report (PDF, 3.80mb)
17 October 2012
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