Home owner insurance – first-time buyers
Fewer first-time buyers are becoming home owner insurance holders in the UK today, according to the results of two recent surveys reported by the Residential Landlords Association [RLA].
One survey cites that almost two-fifths of aspiring landlord insurance holders expect to be 40 or older, when they buy their first home.
On top of this, one in twelve people think that they’ll never own their own home at all.
Research from property website Globrix, finds that while 74 per cent of home owner insurance holders bought their first property before they were 30 – only 13 per cent of aspiring first-time buyers said they would achieve this.
And Rightmove.co.uk says that at just 23 per cent, the proportion of first-time buyers is only around half the level of a typical healthy housing market.
The findings in both studies have been reviewed at an emergency meeting, called by housing minister Grant Shapps.
But the meeting found that there’s no ‘magic bullet’ with which to resolve the issue.
In the Rightmove research, it was found more than half think their biggest barrier to getting on the ladder was getting a mortgage.
44 per cent meanwhile state their main concern as being raising a deposit, while 10 per cent say they’re worried about the monthly payments, given the economic squeeze being posed by inflation.
The RLA notes that Rightmove questioned as many as 30,000 potential landlord insurance holders last month, and of these, fewer than one in four disclose they’re planning to buy for the first time.
And the other survey run by Globrix finds that aspiring first-time buyers are also relying heavily on the ‘Bank of Mum and Dad’ to help them get their first place.
Data from the study shows that more than a quarter expect their parents will be able to provide 20 per cent or more of the deposit they need to buy their first home.
Research by this firm also finds that university debt may be acting as a further barrier to young people getting on to the property ladder.
Of those surveyed who had graduated since 2006, one in seven agree that their university debt will delay them getting on the property ladder.
One in five meanwhile think they’d have been able to get on the property ladder earlier, if they didn’t attend university.
And almost a quarter of people that haven’t been to university said that getting on the property ladder is more important than getting a degree.