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First time buyer confidence holds steady following Brexit vote

First time buyer confidence holds steady following Brexit vote

The number of prospective first-time buyers planning to get on the housing ladder has remained the same despite uncertainty following the European Union referendum, according to research by Aldermore and YouGov..

The First-Time Buyer Index, which was conducted both before and after the EU referendum, found similar levels of confidence from first-time buyers looking to purchase their property in the next 12 months.

The research - based on a sample size of 1,181 - suggested around a million people who have never previously owned a property are planning on purchasing their first home in the coming year.

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Almost all (95 per cent) of first-time buyers told the survey they are finding it difficult to get on the housing ladder, with almost four out of every 10 - 39 per cent - saying it is extremely difficult.

A total of 5 per cent of respondents listed mortgage affordability as their main barrier, with fewer than one in ten of first time buyers citing difficulties securing a mortgage.

Instead, raising a deposit has overtaken property prices as the main obstacle faced, at 39 per cent compared to the previous survey, up from 36 per cent.

According to the research, less than one in five - 16 per cent - are planning on funding the deposit from their savings without any additional help, down from 18 per cent prior to the European Union referendum.

YouGov's survey, explored how confident those currently looking to buy their first property feel, and what the biggest hurdles are when trying to get on the housing ladder.

Nearly twice as many prospective first-time buyers are planning to apply jointly with their partner, when it comes to applying for a mortgage at 48 per cent, compared to just over one quarter at 25 per cent of people doing it on their own.

Charles Haresnape, group managing director for mortgages at Aldermore said: “Our research, conducted both immediately before the EU referendum and after the initial period of uncertainty following the Brexit vote, shows that first-time buyers’ mind-set remains almost entirely unchanged on their plans to purchase their first property.

“First-time buyers are the driving force of the property market, and the levels of confidence and economic outlook have large-scale ramifications further up the housing chain.

"Tracking the changing attitudes of those looking to buy their first property is an important part in assessing how the market can be adapted to work in the best interests of all those looking to make their dream of owning their own home a reality.

“While around a million people are looking to get on the housing ladder in the next twelve months, trend data shows only around a third or so will actually achieve that goal, with the number of first-time buyers in the last two years in the region of 300,000."