Bluestone research reveals affordability, saving for a deposit, and insufficient income top barriers to homeownership for first-time buyers

04 September 2024

AFFORDABILITY, SAVING FOR A DEPOSIT, AND INSUFFICIENT INCOME CITED AS TOP BARRIERS TO HOMEOWNERSHIP FOR FIRST-TIME BUYERS

As the cost of living crisis continues to impact people’s ability to save money, new research from Bluestone Mortgages reveals the biggest barriers to homeownership.1 For nearly two fifths (37%) of first-time buyers, general affordability and cost of living was cited as the greatest challenge, followed by raising a large enough deposit (34%) and having insufficient income (33%).

Although affordability concerns are cited as the biggest hurdle, very few potential first-time buyers are aware of the schemes in place that could help them get onto the property ladder. Only a third (36%) were aware of Shared Ownership, and less than one in 10 (8%) were aware of Deposit Unlock and how it could help them.

Home movers who are trying to climb the property ladder face similar - if not the same - challenges. For more than two fifths (43%) of home movers, house prices in the area were the greatest challenge. This was followed by mortgage interest rates (37%) and general affordability and cost of living (35%).

Top five barriers to homeownership

Barriers to Homeownership First-time buyers Home movers
1 General affordability / general cost of living - 37% House prices in the area - 43%
2 Raising large enough deposit - 34% Mortgage interest rates - 37%
3 Insufficient income - 33% General affordability / cost of living - 35%
4 House prices in the area - 32% Number of properties available - 25%
5 Mortgage interest rates - 27% Raising large enough deposit - 19%

Despite these barriers to moving onto and up the property ladder, only three in 10 are currently using a broker to help them secure a mortgage. Another third (33%) are hoping to engage with one in the future whereas 15% are planning on applying for their mortgage directly with the lender.

Ryan Davies, Strategy Director, Bluestone Mortgages, comments: “For many people getting onto or climbing the property ladder is still a distant dream, but it’s not impossible with the right support. Now more than ever, the industry needs to focus on developing and raising awareness of innovative solutions such as Deposit Unlock to tackle the challenges associated with getting onto the property ladder. Brokers have a key role to play in this, not only through marketing their services and demonstrating where they can add value, but highlighting the range of products available to help customers with smaller deposits achieve their homeownership ambitions.”