COVID-19 delaying home buying plans for almost half first time buyers, while accelerating plans for nearly one in four.
Half of first time buyers (52%) in a
The onset of COVID-19 has been a major factor in the house buying process, casting a shadow over some financial decisions in the current climate. Almost half of respondents (48%) revealed that the impact of the public health emergency delayed their plans to buy a home, while almost one in four (23%) said the pandemic had accelerated their plans to buy a home. One in five (21%) said that COVID-19 has made them rethink the location they would like to buy in, with a similar proportion (22%) rethinking the type of property they would like to buy.
In keeping with rising savings levels driven by reduced day-to-day spending opportunities, the average amount first time buyers are putting aside for a deposit has grown in 2020 when compared with previous years. Nearly a quarter (23%) of those surveyed are now saving between
More than half (55%) of first time buyers will still require financial help from friends or family to save for a mortgage, with 27% moving in with their parents for a time to enable them to save more. In another sign of the times, there is a marked increase this year in the levels of respondents living outside of
Discussing the survey results,
'Through our discussions with first time buyers we can see that many have had to adjust their plans to reflect the current reality. But this is something our mortgage team are well equipped to deal with, and we would encourage anyone who is thinking of putting their purchasing plans on hold to come and talk to us, we are here to help. We can offer features such as Cashback, providing 2% of the mortgage back as cash up front, which is very popular with first time buyers. With the survey revealing that 31% of people are hoping to buy or build within the next six months we look forward to helping as many people as possible start on their home buying journey.'
*Research was conducted by RED C
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