First time buyers had previously spent approximately five years saving up a deposit.
However, almost half (48%) have seen their timeline extend by up to a year and almost a quarter (22%) by at least two years due to broader economic uncertainty.
Despite this, eight out of 10 recent buyers said that the challenges were worth it in the end.
First time buyers are making several compromises in order to meet their goal faster.
Over half (55%) of all prospective FTBs are considering purchasing a cheaper home to offset higher interest rates and mortgage repayments. Meanwhile, more than half (53%) are considering moving further away from friends, family and work in order to get on the ladder sooner. Just under half (46%) of prospective FTBs are considering buying with someone else to improve their chances of getting a mortgage.
Jon Cooper, director of mortgages at Aldermore, said:
“We really must applaud first time buyers and their resilience, especially as they’ve been hit with more obstacles and uncertainty than they would have in previous years. It’s not easy getting on the property ladder and it’s reassuring that people are taking proactive steps to realise their goals, either by delaying their plans in order to save more or compromising to find something more affordable.
“While it’s great that buyers are being so pragmatic, action needs to be taken to help make buying more achievable. It is positive that the Chancellor did not use their recent Budget announcement to roll back Stamp Duty relief for first-time buyers as was speculated, however the choice to increase additional stamp duty on second homes to 5% will have an impact on our housing system. We need to boost the supply of suitable properties to make the journey to homeownership easier, and until action to reform planning is taken then it will remain a challenging environment for young people looking to make their homebuying dreams a reality.”
