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18 October 2012

First-time buyers more financially focused

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by Gill Montia

First-time buyers more financially focused

A new report from Yorkshire Building Society claims that today’s first-time buyers are more financially focused than those who bought before the credit crunch.

However, economic turmoil hasn’t dampened their desire to “nest” rather than “invest” – 85% of respondents who bought in the last year said setting up home with their partner was their primary goal.

At the same time, 45% thought that property is currently a good investment and 50% of potential first-time buyers were in agreement.

Three out of four respondents who had yet to purchase their first property aspired to own their own home, suggesting that more people than ever are looking towards bricks and mortar to provide them with certainty.

Other findings from the research include:

76% of people who have yet to own their first home said this is a key aspiration.

In the last five years the number of first-time buyers needing help from family and friends has more than doubled, from 4% to 10%.

60% of first-time buyers in the last year set up a regular savings account specifically for their deposit.

The proportion falls to 41% for those who have aspirations to buy.

Yorkshire’s group direct mortgage manager, Chris Smith, comments: “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.”

He adds: “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.”

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