Of the study respondents, 32% of people say they don’t know the size of deposit they would need to buy their own home, and a further 32% think they need at least 20% or more - and 32% saying the biggest barrier to homeownership is saving for a deposit.
Consequently, while nearly 7 in 10 (69%) people who don’t currently own their own home say that they would like to in the future, 22% think that it will take more than five years for them to be in a financial position where they can own their own home. And 36% believe they will never be in a position to do so.
Ryan Brailsford, director of business development at Pepper Money, said:
“The Pepper Money Specialist Lending Study surveyed a demographically representative sample of more than 4,000 British adults and has uncovered several misconceptions amongst the population. With nearly two-thirds of potential first time buyers unaware of the size of deposit they would need, or think they need to save at least 20% of the value of their first home, it’s clear that there are thousands of hopeful homeowners out there who have written off their immediate chances to take a first step onto the housing ladder even though they may be in a position to do so."
Zara Bray from Legal & General, Head of Strategic Accounts, added:
“Home ownership in the UK is still desirable and brokers play an important role in helping customers to achieve those dreams. This research highlights an opportunity to help thousands more customers who are currently writing off their chances of buying their first home. I believe the industry can do more to educate the public about the options available to them. Lender innovation is key, together with brokers who can market those products, criteria, and services to their customer base in order to elevate the opportunities available to first time buyers. These efforts will help, not only to raise awareness and understanding amongst customers, but it will also help brokers to grow their business.”
