A recent survey commissioned by HSBC UK reveals first-time buyers in the UK are feeling increasingly optimistic about their prospects of stepping onto the property ladder, with
nearly seven in 10 (68%) first-time buyers are now more confident about buying their dream home than they were at the start of 2023. These trends are giving hope to potential homeowners, despite the persistent economic challenges many individuals face.
The survey showcases the motivations behind aspiring homeowners’ desires to enter the property market and how they are saving to achieve their homeownership dreams. Remarkably, nearly 68% of people planning to purchase their first homes within the next 12 months express more confidence in achieving this goal now compared to the beginning of the year.
Various reasons were cited for the desire to own a home, with cost-effectiveness taking the top spot at 21%. Independence closely followed at 20%, while financial security (17%) and providing for family (14%) were also significant motivators. Surprisingly, only 11% considered their first home as an investment.
Another notable finding from the survey is that approximately 73% of prospective homebuyers are actively seeking properties in need of renovation. This preference for ‘doer-uppers’ reflects the desire to manage initial costs, demonstrating the pragmatism of these buyers and an interest in creative control.
Andrew Matson, Head of Mortgages at HSBC UK, expressed optimism about the shift in attitudes, saying, “It’s encouraging to see more optimism amongst first time buyers. The first half of this year has been challenging, but the shift in attitudes is reassuring and highlights the resilience of the housing market.
“At HSBC UK, we have been supporting our customers through the recent economic challenges in a number of ways, this includes providing support under the Mortgage Charter. We have also developed an online guide for first time buyers and I would encourage anyone looking to purchase their first home to use the guide.
“While we don’t have a crystal ball to see what the future holds, it is pleasing to see the positive sentiment running throughout our research and we will continue to lean in to help support our customers.”
A substantial 68% of respondents indicated using a savings account as the primary method for accumulating funds for a deposit, while 24% utilised an Individual Savings Account (ISA).
The survey also shed light on how consumers seek out mortgage providers. The most popular sources for mortgage information included using a broker or financial adviser (41%), visiting the websites of mortgage providers themselves (30%), online comparison sites (28%), online money-saving websites (25%), and recommendations from friends and family (22%).
When selecting a mortgage provider, the cost of the mortgage was the most critical factor for 32% of respondents, followed closely by recommendations from brokers or advisers (31%) and trust in the brand (26%).
HSBC UK has also developed a Mortgage Repayment Calculator, which can provide readers with an overview of what their repayments could be based on the interest rate, term and repayment type selected.
