Home Residential PropertyFirst-Time Buyers Brexit confusion forces nearly half of prospective FTBs to alter plans

Brexit confusion forces nearly half of prospective FTBs to alter plans

by LLP Reporter
1st Aug 19 3:17 pm

The seemingly never-ending Brexit merry-go-round and constant political uncertainty has forced around 47% of prospective first-time buyers in the UK to alter their plans when looking to purchase their first property.

Specialist bank, Aldermore, asked over 1,000 prospective first-time buyers if confusion surrounding our exit from the EU had changed their home buying plans.

According to the figures, 47% decided to change their plans, 24% delayed purchasing a property, with 16% doing so by twelve months or more. Furthermore, over a fifth (22%) of prospective first-time buyers have brought their plans forward, with 10% doing so by up to three months and 12% by six months or more.

Aldermore’s research shows that the lengthy Brexit negotiation process has hit first-time buyers living in the capital most substantially, with over three fifths (63%) of those trying to get on the property ladder changing their homebuying plans as a result of the uncertainty.

Moreover, career choice is also an important factor. People in the UK who are their own boss have had their plans disrupted more, with over half (56%) of self-employed first-time buyers needing to make changes to their timeline for buying, followed by those who are employed full time (50%).

How first-time buyers want the new government to help them more

Prospective first-time buyers were also asked how they could be helped more by the Government to get on the housing ladder.2 The top response with 21% was for the Help to Buy scheme to be extended to all properties, not just new build, 19% would like an introduction of a Rent to Buy scheme, and 18% would like the introduction of policies to reduce the number of empty homes in the UK.

Damian Thompson, Director of Mortgages at Aldermore said, “Owning a home is a long-term investment that’s likely to outlive current short-term political ambiguity and economic conditions; even if they may cause frustrating delays or changes to house buying plans. There will always be economic ebb and flow and, within that, temporary periods of uncertainty in a housing market that is ultimately cyclical in nature.

“Our survey shows this has not dampened prospective first-time buyers’ appetite for home-ownership with 81% saying it is a dream to own a home and similarly 81% see property as a good investment.”

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