Difficulties faced by First Time Buyers hit record high

According to a new survey published by the Home Owners’ Alliance, First Time Buyers are struggling more than ever to get on the property ladder.

According to a yearly study, 87% of UK adults and 91% of aspiring first-time buyers say the ability to get on the housing ladder is a serious problem. That is the highest level since tracking began 6 years ago. Meanwhile, 85% say saving for a deposit and 82% say house prices are serious housing problems.

The Homeowner Survey 2019, sponsored by BLP insurance and resi.co.uk takes a look at the latest national and regional housing issues. It also looks at the conditions affecting the housing market.

Almost six in 10 renters who want to own are convinced it is just a pipe dream. Almost two thirds (64%) of renters think that the Help to Buy equity loan scheme is a good idea as it addresses the major hurdle of saving a deposit. Meanwhile, less than half of renters (46%) think Shared Ownership is a good alternative to renting.

The fastest rising issue in the Homeowner Survey 2019 is the quality of British homes. Up 6% from 2018, two thirds (63%) are worried about the quality of homes. The ability to get a mortgage and repay a mortgage, though down from previous years is still a pressing issue for nearly two-thirds (64%) of UK adults.

With the quality of new homes in the spotlight, there is overwhelming support for a snagging retention fee. Almost 9 in 10 (87%) new build homeowners support a system to withhold funds from house builders until they rectify faults.

In addition, only 57% of new build homeowners say they felt their warranty provider fulfilled their responsibility to resolve disputes with builder in first two years and put right structural problems after two years. The snagging process is the least satisfactory step of the new homes buying process. While the most satisfactory step is the new homes mortgage process.

60% of Britons now say the leasehold system is a serious problem, up 18% from 42% five years ago. Most leaseholders (54%) have experienced problems. The high cost of works and management fees top their list (cited by 26% of leaseholders). More than one in ten (12%) complain of the complexity and high costs to extend their lease.

Paula Higgins, Chief Executive of the HomeOwners Alliance, said: “Problems in our housing market have reached a crisis level. Government needs to rethink its approach by thinking more holistically and longer-term.

“We crave a stable functioning housing market that delivers for everyone. From those struggling to get on to the ladder to those who find themselves at the whim of the leasehold system. Our annual survey shows more First Time Buyers than ever before reporting their struggle to get on the ladder. It also demonstrates how government and industry is failing a whole generation. Our survey shows that although we are building more, we are not building better.”